Ethereum (ETH) remained below expectations in December, disappointing many who expected it to hold above $4,000. Despite this, ETH managed to gain almost 6% in seven days, showing some signs of resilience.
The RSI has been neutral for a week now, with whale activity stabilizing at its highest levels since September. ETH is consolidating between $3,523 and $3,220, waiting to break resistance or hold critical support.
ETH RSI has been neutral for a week
Ethereum’s Relative Strength Index (RSI) is currently at 50.21, remaining in the neutral zone where it has been fluctuating between 35 and 55 since December 20.
This indicates that ETH price action has lacked significant momentum in either direction over the past week, reflecting a period of consolidation.
ETH RSI. Source: TradingView
The RSI is a momentum indicator used to measure the strength of price changes, with values ranging from 0 to 100. Readings above 70 generally indicate overbought conditions, signaling potential price corrections, while readings below 30 suggest oversold conditions, which could lead to price recoveries.
The 50.21 level suggests a balanced market with neither buyers nor sellers exerting strong control.
Whales show uncertainty
On December 25, the number of addresses holding at least a thousand ETH reached 5,634, the highest level since September. This was followed by a slight decline to 5,631 on December 26.
The rise comes after a monthly low of 5,565 on November 28, highlighting a gradual recovery in activity among large holders.
Addresses with balance >= 1,000 ETH. Source: Glassnode
Tracking the behavior of ETH whales is important because their holdings and movements often influence the market due to the significant amounts of liquidity they control.
The current stabilization at higher levels suggests that large holders are maintaining confidence in ETH, potentially supporting its price in the short term. However, the slight decline also indicates caution, meaning that the cryptocurrency’s price could remain range-bound unless there is a decisive change in whale behavior.
Price Prediction: ETH in Consolidation Before a New Breakout?
Ethereum is currently trading in a range with resistance at $3,523 and support at $3,220. Its EMA lines indicate a bearish trend, with short-term averages positioned below the long-term ones.
However, the weakening strength of this trend suggests that ETH may be entering a consolidation phase rather than continuing its decline.
ETH Price Analysis. Source: TradingView
If the price breaks above the resistance at $3,523, it could target higher levels at $3,827 and potentially $3,987.
On the other hand, if the support at $3,220 is tested and fails to hold, the price could drop further to $3,096, marking a critical level for potential stabilization.
The article Ethereum (ETH) May Not Return to $4,000 Anytime Soon, Analysis Reveals appeared first on BeInCrypto Brazil.
