Ethereum (ETH) Price Prediction For December 19: Sell Signals Emerge

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As a seasoned crypto investor with over a decade of experience navigating market volatilities, I’ve seen my fair share of double-tops and dovish Fed decisions. The recent FOMC meeting has once again reminded me of the unpredictable nature of this space, as Ethereum‘s 7% plunge on Wednesday demonstrates.

The conclusion from the Fed’s FOMC meeting in 2025 indicating fewer interest rate cuts led to a downturn in the crypto markets, with Ethereum dropping by 7% on Wednesday. Currently, Ethereum is trading at $3,700. The four-hour chart suggests a possible sell signal and indicates that Ether might reverse its bullish trend due to a double-top formation. This pattern typically signals a reversal. Could Ether reverse the upward trend and initiate another significant correction of more than 10%? Let’s examine further.

Ethereum Price Today: Why ETH is Down 7%?

On Wednesday, the price of ETH decreased by 7% following the FOMC meeting. This was because the Federal Reserve suggested only two potential interest rate cuts in 2025 instead of the anticipated four. Although reduced interest rates are often seen as a positive signal for the market, fewer cuts than expected have led investors to view this as bearish news, causing them to sell off ETH.

As an analyst, I observed that the recent decision had a ripple effect beyond the cryptocurrency markets, affecting traditional ones as well. For instance, on Wednesday, the S&P500 witnessed a significant decline, closing 2.90% lower with a loss of 175.48 points.

Sell Signals Emerge

As an analyst, I’ve observed that the market downturn following the FOMC’s actions has impacted the crypto market significantly, and this is particularly evident in the case of Ethereum. On a four-hour chart, Ethereum seems to have formed a double top, which is a technical pattern that often serves as a sell signal. This suggests a potential reversal of the upward trend that Ethereum has been experiencing.

If the price falls below either the $3,656 or $3,539 resistance points, it would signal a successful breakout from the double-top pattern. This might lead to an approximate 13% decrease in ETH’s value, taking it down to around $3,080.

If bulls regain their strength, pushing Ethereum’s price above $3,656 (a potential rebound point), it could disrupt the double top pattern that has formed. For this scenario to play out, Ethereum’s price must first surpass $4,111 and transform this level into a strong support base. This development would negate the sell signal and likely drive Ethereum’s price upwards towards a new all-time high of around $5,000.

Investors Send 190,000 ETH Out of Exchanges

Based on information from Santiment, the amount of Ethereum stored on exchanges decreased from approximately 10.8 million on December 16 to around 10.61 million by December 19. This decrease suggests that roughly 190,000 Ether valued at about $7 billion have been removed from centralized platforms.

A drop in supply is considered a positive sign (bullish) by investors who have enough confidence to store their Ethereum tokens in cold wallets instead of hot wallets like exchanges. This indicates that these investors believe in Ethereum’s future performance and are not planning to sell their ETH soon.

What’s Next For Ethereum?

If Ethereum’s price finds support around $3,500 – $3,600 and manages to surpass $4,000, there’s a possibility it might regain its all-time high (ATH) at approximately $4,878. In certain scenarios, Ethereum’s price forecast points towards potentially setting a new ATH.

If Bitcoin falls, maintaining Ethereum’s position might prove challenging. In the event that the support level at $3,500 collapses, it could lead to a substantial drop of around 10%, reaching either $3,100 or $3,000.

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2024-12-19 13:52