Ethereum Price Action Is Bullish Unless ETH Breaks $3,700 Support, New ATH Soon?

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As a seasoned researcher with over a decade of experience in the ever-evolving world of cryptocurrencies, I find myself intrigued by the current state of Ethereum. The recent price fluctuations have left many investors on the fence, but I believe the glass is decidedly half-full.

Following its recent recovery, the Ethereum price is encountering robust opposition near the $4,000 level as investors pause, anticipating a bullish surge. As Ethereum hovers around $3,900 once more, investors exhibit caution against another dip. Yet, on-chain indicators suggest resilience, suggesting an upward trend may be imminent.

Ethereum Price Needs to Hold This Key Support

crypto expert Ali Martinez has pinpointed a crucial support area for Ethereum, spanning from $3,700 to $3,810. This area carries substantial weight because around 3 million wallets collectively acquired roughly 4.6 million Ether within this price range.

Martinez explained that there’s significant demand for purchasing Ethereum (ETH) at its current level, making it a robust foundation to prevent additional price drops during market turbulence.

Moreover, according to blockchain analysis company Santiment, there was a significant increase in activity on the Ethereum network, with the creation of new wallets reaching an 8-month peak. On average, the network saw around 130,200 new addresses daily in December, a level of interest last observed in April.

As a crypto investor, I’m noticing an increasing enthusiasm among Ethereum enthusiasts, who see potential profits on the horizon. Additionally, the surge in investments into Ethereum ETFs has only heightened this optimism. Interestingly, BlackRock’s Ether ETF has just seen a $3 billion influx, which indicates that more and more investors are turning their attention towards this investment tool.

ETH On-Chain Metrics Show Strength

This week, Ethereum’s on-chain statistics are displaying significant expansion, indicating heightened network usage and positive momentum for the cryptocurrency. This growth is evident in a 4.24% increase in active addresses and a 2.65% surge in new address creation. Additionally, several other indicators are also demonstrating resilience. Furthermore, Ethereum whale activity hints at potential further gains.

Ethereum Price MVRV Bands

In simpler terms, analysts suggest that Ethereum’s current Market Value to Realized Value (MVRV) price levels, which are crucial for understanding market trends, aren’t showing significant increases, indicating it might not have fully transitioned into a major bull market stage as of now.

Historically, Ethereum has tended to reach cycle peaks after being priced 3.2 times its Realized Price (RP). Even though this multiplier might increase during a bull market, the current forecast suggests that Ethereum could potentially peak at around $6,575, with a similar prediction made by asset manager VanEck.

ETH Realized Cap Signals Early Expansion

The “realized capitalization” of Ethereum, a significant statistic that reflects the combined worth of all coins based on the price at which they were last traded, experiences fluctuations between growth and decline phases as the market trends up and down.

In my recent analysis, it seems that the previous Ethereum cycle underwent a three-year contracting phase followed by an expansive year, reaching its peak. Remarkably, this current cycle appears to be following a similar trajectory. The contraction phase concluded in May 2024, marking the beginning of the realized cap’s expansion phase in November. This suggests that Ethereum still has significant potential for further price rally in the near future.

Ethereum vs. Bitcoin Chart Hints at Major Upside

According to well-known cryptocurrency expert venturefounder, the comparison between Ethereum and Bitcoin after the Bitcoin halving event suggests there could be significant price increases for Ethereum in the future.

Historically, Ethereum hasn’t outperformed Bitcoin for less than eight months after its halving event, but it has always followed this up with a significant rise against BTC. Given that we are now in the eighth month of the current halving cycle, Ethereum seems to be following the usual pattern and is poised for an upward trend.

According to the current trend, it’s possible that the ratio of ETH to BTC could rise significantly, potentially reaching 0.39 – a substantial increase of approximately 700% compared to the halving. This would imply that if Bitcoin reaches a projected price of $100,000, Ethereum’s value could be roughly estimated at around $39,000 per coin, as suggested by the analyst.

Today, the price of Ethereum (ETH) increased by 1% to reach approximately $3,927. Its market capitalization stands at a substantial $473 billion. According to data from Coinglass, the liquidation over the past 24 hours has significantly risen to around $16 million, while the open interest remains relatively stable at about $27 billion.

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2024-12-14 13:14