At the time of writing, the price of ETH is trading at $3,768, with daily losses of 4.93%, weekly gains of 3.78% and monthly gains of 20.86%.

The Ethereum token faced a strong rejection as it was unable to break above the key resistance level at $4,100. This range had not been seen since December 2021.

As a result, the cryptocurrency was unable to position itself above $4,000 and experienced a significant correction.

It is worth noting that according to IntoTheBlock, last week ETH investors accumulated over $1 billion , while the net flow observed on December 4 was 104,000 ETH.

What is driving ETH price down?

The factors driving the ETH price down are related to the BTC correction.

The altcoin market needed Bitcoin to position itself above $100,000 to maintain momentum. But the largest cryptocurrency by market capitalization experienced a pullback below this key line.

Other analysts mention that, in turn, the price of BTC and ETH are influenced by macroeconomic concerns: mainly Nvidia (NVDA) shares saw a major setback after news that this company would be investigated for monopoly.

Other important macroeconomic data include China's inflation data, which showed that China's CPI in November rose 0.2% year-on-year, representing the lowest growth in five months.

Finally, it is worth mentioning that the BTC decline is due to a slowdown in whale activity, as there is a decrease in their activity.

ETH Chart Analysis: Key Levels

After a rally of around 8% last week, the ETH price found strong resistance around $4,100. This is how the correction started and now the price is holding on to support around the EMA 100 or $3,680.

The next support level is $3,490, a level from which the price found a bottom and bounced today. If the previous level is lost, then the price would find a bottom around the EMA 200 or the current $3,430.

As for resistance, the $4,100 level represents a double top, given that this level had already been reached on March 11. So it is the most important line to overcome in the short term and on the way to $4,733, which is the all-time high.

In between these two levels there is another resistance at $4,400, the price may face setbacks before reaching this level.

Finally, what the RSI at 30 points tells us is that ETH could be close to oversold. This range is not enough to claim that there will be a rebound, but it could be a sign that the worst is over regarding ETH's fall.

Is ETH on the verge of a major rally?

Despite the correction, several analysts believe that the price of Ethereum is on the verge of a rebound towards levels as high as $7,300.

For example, X user analyst Venturefounder predicts such a rise based on the formation of the cup and handle pattern:

$ETH is waking up. #Ethereum is breaking out this 2-year-old, gigantic cup-and-handle formation:

Eleven $3,800 has been made support,

The next price targets are:

$4,900

$5,349

$6,457

$7,238

«ETH is waking up. Ethereum is bringing out this giant cup and handle formation from 2 years ago: Once $3,800 support is obtained, the next price targets are: $4,900, $5,349, $6,457, $7,238. Time frame: end of Q1 2025 at the latest.»

Other analyses point to a decrease in the supply of ETH on centralized exchanges. Platforms such as Coinglass point out that more than 363,000 ETH were withdrawn in the last week and the total supply was reduced by 15 million ETH . On the other hand, the number of ETH in Staking is 34.3 million ETH and there is a growing increase in the number of ETH validators, which already exceed 100,000.