- Ethereum continues to trade in the $3.8K zone.
- The market saw $47.73 million worth of Ethereum liquidated.
Bears in the crypto market have reversed the momentum, pushing prices into the red zone. With Bitcoin continuing to trade above the anticipated $100K threshold, the market eyes on Ethereum to reclaim the $4K mark.
Despite the current market trend, crypto analysts are targeting big, forecasting that Ethereum will soon climb to $20K. With BTC making history, ETH may lead the way next year.
After being in the consolidation phase, ETH broke through the $3,937 and $3,979 resistance levels in the early hours and climbed to form a high of $3,987. While the immediate resistance at $4,000 is met, a breakout rally could pave the way for more gains.
At press time, ETH had a modest loss of over 1% and traded at $3,890. In the meantime, the daily trading volume stays at $41.4 billion. Notably, the market observed a liquidation of $47.73 million worth of Ethereum during this interval.
Whales are accumulating Ethereum after the price drop. As per on-chain data, a whale has created a new wallet and pulled out 5,160 ETH, worth $20 million at the price of $3,888, from Binance.
Whales accumulate ETH as the price dips, indicating confidence in the asset’s value. When large amounts of assets are withdrawn from exchanges, it will likely reduce the supply. It could potentially lead the price to move upwards as demand increases.
Will ETH Surge Past $4K Anytime Soon?
The Moving Average Convergence Divergence line of the ETH/USDT trading pair illustrated that the MACD has crossed above the signal line. This crossover suggests that the asset’s upward momentum is increasing and traders often interpret it as a potential buy signal.
Besides, the Chaikin Money Flow (CMF), a technical indicator that determines the money flow, is likely stationed at 0.15. It hints at the positive money flow, with moderate accumulation in the market. Meanwhile, the daily trading volume of ETH has spiked by over 13%.
The four-hour pricing diagram of ETH has shown its extended battle to break the $4K threshold. In case, the buyers remain in control, ETH price might move toward $4K. Securing the $4.2K support may ignite an upside rally and Ethereum to target a highly bullish $4.5K mark.
In a highly bearish scenario, the price of Ethereum could visit its previous low at $3.4K. However, if ETH continues to underperform, a steady downside correction may follow. It might potentially send the altcoin’s price down to the $3K mark, nullifying the gains.
The altcoin’s trading frame has revealed the short-term 50-day moving average above the long-term 200-day moving average. Moreover, the daily relative strength index (RSI) is found at 54.61, pointing out that ETH’s current market sentiment is in the neutral zone.
