Since the price of Ethereum (ETH) dropped below $4,000 on December 17, it has struggled to regain that level, sparking speculation that ETH may not return to the region before the end of 2024.
However, the 5% price increase in the past 24 hours suggests that sentiment may be changing. For Ethereum to reclaim $4,000, several key factors must align. Here’s what needs to happen.
Ethereum Holders Prepare to Overcome Hurdle
According to In/Out of Money Around Price (IOMAP), Ethereum price is holding strong support at $3,352. At this point, 3.34 million Ethereum addresses are holding 3.18 million coins and are in profit.
IOMAP ranks addresses based on unrealized profits, losses, or breakeven points. The more volume or number of addresses in the accumulation range, the stronger the support or resistance. Therefore, a higher out-of-the-money volume indicates stronger resistance, while a higher in-the-money volume indicates stronger support.
As shown below, the main resistance for Ethereum price to break above $3,508. Here, 3.90 million Ethereum addresses have purchased 1.62 million ETH. Therefore, if the buying pressure increases, the cryptocurrency may break this hurdle and trade near $4,000.
Another indicator that supports the bullish bias is holding time. As the name suggests, holding time measures the period of time that a cryptocurrency has been held without being sold or traded.
The longer the holding time, the longer the holders will refrain from selling. Also, when the holding time decreases, it indicates that investors are selling.
According to IntoTheBlock data, Ethereum’s holding time has increased by 332% in the past seven days. If this trend continues, the above-mentioned bullish thesis for Ethereum could be confirmed.
ETH Price Prediction: Higher Values Coming Soon?
From a technical perspective, Ethereum has risen above the Ichimoku Cloud. The Ichimoku Cloud is an indicator that identifies support and resistance. When the cloud is above the price, it indicates resistance.
But when the price is above the cloud, it indicates support, which may push the price higher. So, for Ethereum, the cryptocurrency may rise to $4,109. If the bulls maintain the line above $4,000, the value may rise to $4,500.
But if the bears take control, this may not be the case. In this scenario, Ethereum price may drop to $3,111. If selling pressure intensifies, the price may drop below $3,000.