Ethereum’s price is back above $4,000 driven by strong buying and solid support levels. IntoTheBlock data shows 7.2 million ETH were bought just below $4,000. This shows strong demand from investors. This demand suggests that Ethereum’s price may stay above $4,000.
As $ETH pushes back above $4000, a strong support level is solidifying just below this threshold.
7.2 million ETH were purchased at prices slightly under $4,000, signaling significant demand. This demand should help sustain Ethereum’s value above the $4,000 level. pic.twitter.com/yAunfqcbY5
— IntoTheBlock (@intotheblock) December 17, 2024
Additionally, a high-profile move from Justin Sun, who applied to withdraw over 52,000 ETH from Lido Finance, adds further weight to Ethereum’s current market momentum.
This adds to Ethereum’s momentum. Sun also bought 392,474 ETH earlier this year. These moves show growing institutional interest and could fuel bullish sentiment.
Justin Sun (@justinsuntron) applied to withdraw 52,905 $ETH (now $209M) from #LidoFinance an hour ago.
This is part of the net 392,474 $ETH he allegedly bought at ~$3,027 ($1.19B) via 3 wallets from Feb-Aug, now having an est. total profit of $349M (+29%).
Note that on Oct 4,… https://t.co/r5z7l8YSUq pic.twitter.com/GAalq1imjO
— Spot On Chain (@spotonchain) December 16, 2024
Ethereum Price Trends and Analysis
Ethereum’s current price stands at $4,025.5, reflecting a daily gain of 0.92%. The broader trend shows a clear bullish pattern since October, characterized by a series of higher highs and higher lows.
This uptrend has strengthened Ethereum’s position. Recent price action is consolidating around $4,000. Ethereum is at a turning point. The fight between buyers and sellers will likely decide its next move.
Read also: Ethereum’s $7.79B TVL Gain Outpaces Tron’s $900M Rebound
Key Support and Resistance Levels for Ethereum
Ethereum’s price faces key resistance levels that will likely dictate its short-term direction. The immediate resistance range lies between $4,050 and $4,100, a level that has been tested but not decisively broken.
If Ethereum breaks above this zone, it could move toward $4,200. This price is both a mental barrier and a previous high, making it important to watch. A break above $4,200 could lead to more gains, with $4,500 as a possible target.
On the downside, immediate support is found at $3,800, a level that has previously served as a breakout point. This support should act as a strong defense against any downward moves.
However, if Ethereum fails to hold above $3,800, the next key support level lies at $3,600. This level coincides with the start of Ethereum’s recent rally in late October and would likely act as a final defense before a deeper pullback.
Technical Indicators and Ethereum Price Momentum
ETH/USD 1-day price chart, Source: Trading view
Ethereum’s Relative Strength Index (RSI) is currently at 65.16, just below the overbought threshold of 70. This indicates that Ethereum still has room for growth without entering overbought territory.
However, traders should be careful. The RSI is getting close to levels that could signal a slowdown. If the price keeps rising while the RSI falls, a bearish divergence could form, hinting at a possible reversal.
The MACD indicator also shows signs of weakening momentum. The MACD line is currently below the signal line, with a negative histogram indicating a slight decrease in bullish strength.
Traders should watch for a possible crossover of the MACD line back above the signal line. This could boost bullish momentum. But if the divergence continues, Ethereum might see short-term consolidation or a small pullback.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
