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Last day, the price of ETH rose to 4,069 USD, however, it fell back to the level of 3,874 USD, from where it rebounded to the current levels.
While, at the time of writing, its price is trading at 3,942 USD, with daily gains of 1.2% and weekly gains of 3.38% and monthly gains of 25.77%.
Last day’s rally led several analysts to project large increases, even to $10,000. However, for now ETH has been unable to break through key levels, which in turn generates bearish projections.
So to get clarity on where the second-largest Cryptocurrency by capitalization stands and what’s coming next, let’s explore what factors are driving it higher.
Whale activity points to accumulation
The factors driving the ETH price higher today are related to high activity by whales with signs of accumulation.
Especially, This increase in activity in large holders was led by two large multi-signature wallets who withdrew a significant amount of ETH.
This transaction was associated with institutions:
An institution is accumulating $ETH!
9 hours ago, two multisign wallets with the same creator address withdrew their first 4,502 $ETH ($17.54M) from Binance?src=hash&ref_src=twsrc%5Etfw”>#Binance at ~$3,895 and then staked the tokens with @KelpDAO.
Now, they are up $517K (+3%) as the $ETH price rebounded over $4K.… pic.twitter.com/NFr1D2D2TI
— Spot On Chain (@spotonchain) December 16, 2024
«An institution is accumulating ETH! 9 hours ago, two multi-signature wallets with the same creator address withdrew their first 4,502 ETH ($17.54 million) from Binance and purchased at ~$3,895 and then staked the tokens with KelpDAO. Now, they are up $517,000, more than 3%, as the ETH price recovered above $4,000.”
It should be noted that this is not an isolated case, since whale activity on Ethereum has increased since the end of November, according to on-chain data. These show that addresses with ETH balances greater than $10,000 have increased since the end of November.
The previous reading was supported by cryptonalist Ali, who also relied on data from Glassnode:
“Ethereum whales have been accumulating more and more since ETH broke $3,330.”
ETH Chart Analysis: Key Levels to Watch
After falling to low levels of $3,516 on December 10, the price of ETH rebounded again to above $4,000. However, it has not been able to maintain this level, reflecting strong control by the bears in the USD 4,000 range.
ETH Chart Analysis: Key Levels to Watch Out For. Source: TradingView.
Right now, $4,000 represents resistance because ETH has always corrected above that level. But if the price manages to establish itself above that line in this and the next few days, the doors will be open to challenge the strong resistance of 4,100 USD again.
This latest resistance could allow for further rallies at resistances such as $4,300 and $4,500.
On the other hand, some less optimistic analysts point to setbacks if the price is not able to overcome the $4,100 lineup to the following support levels:
Firstly, the USD 3,900 or the 20 EMA line, if the price continued on its bearish path, the next retracement level would be the USD 3,780 which corresponds to the 100 EMA.
Further down is the strongest support here at $3,520, from where the price bounced strongly and on different occasions in the last few days. So it is a floor that has already been put to the test.
So, furthermore, A break of this level could mean a further pullback and possibly a reversal of the downtrend to levels as low as $3,250..
Although for now the current RSI at 53 points shows a trend towards neutrality. It can be interpreted as the correction from yesterday’s high levels could have reached its floor. So rebounds are feasible from the present levels.
Will ETH reach $10,000?
On the other hand, popular X user analyst Ash Crypto believes that Ethereum’s rise is imminent and that the price will reach $10,000.
ETH supply shock is coming
1) Billions in ETH staked
2) ETFs buying billions in ETH
3) More transactions = ETH burning
4) ETH historical bull cycle
5) Defi now okay in US after trump
6) L2s consuming and locking more ETH
It think $10,000 sooner than we think
— Ash Crypto (@Ashcryptoreal) December 16, 2024
An ETH supply shock is coming:
- Billions of ETH staked
- ETFs buy billions of ETH
- More transactions = ETH burning
- ETH Historical Bull Cycle
- DeFi is now doing well in the US after Trump
- L2s consume and block more ETH
I think we will reach $10,000 sooner than we think.
Precisely, Dune Analytics data indicates that the number of ETH staked exceeded $34 billion, representing 28% of the total supply.
While data from SoSoValue shows that ETH registered positive flows since last November 22. Without a doubt, this is highly positive data that prompts analysts to envision levels as high as $10,000.
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