Ethereum Reaches $4,000: Is It Still An Opportunity To Seize? Technical Analysis Of December 11, 2024

Ethereum reached the resistance of $4,000 before triggering a selling move. Let’s examine the future prospects for ETH.

Ethereum Price Situation (ETH)

Ethereum recorded a progression of over 47% this November. Indeed, ETH has experienced significant expansion since the support level of $2,400. This allowed it to reach and surpass the resistance of $3,560. After a brief consolidation period around $3,500, ETH ultimately continued its rise to reach its latest peak identified at $4,000. The bullish hypothesis presented in the November 20 analysis thus materialized. Unfortunately, the overall decline in the crypto market has led to a retreat of Ethereum back towards its previous range, demonstrating the importance of this level as support.

At the time of writing this text, the Ethereum price is trading around $3,700. The cryptocurrency thus seems to be subtly regaining interest. Regarding the trend of Ethereum, it appears clearly bullish in the short, medium, and long term. These assertions can be supported by the positioning of ETH above its annual VWAP as well as its 50 and 200-day moving averages, which are now clearly oriented upward. Naturally, Ethereum’s bullish momentum has experienced significant acceleration. However, recent fluctuations have revealed some weakening of this trend.

The current technical analysis was conducted in collaboration with Elie FT, an investor and passionate trader in the cryptocurrency market. Today, he is a trainer at Family Trading, a community of thousands of self-directed traders active since 2017. There, you will find live sessions, educational content, and support regarding financial markets in a professional and warm environment.

Focus on Derivatives (ETHUSDT)

The open interest of ETH/USDT perpetual contracts has evolved in phase with the price of its underlying asset, reflecting a lack of new capital inflow and a notable closure of speculative positions. On the CVD side, it continues to fall, suggesting selling interest on the last orders placed in the market. Regarding the funding rate, we observe that the size of long positions remains above that of short positions. However, the indicator shows signs of deceleration. Finally, concerning liquidations, the previous session resulted in significant liquidations of long positions, reflecting a recent capitulation of buyers.

The heatmap of ETH/USDT shows that Ethereum has reached a significant liquidation zone just below $4,000. Unfortunately, Ethereum’s reaction suggests that reaching this level sparked selling interest. Indeed, the cryptocurrency experienced a decline of nearly 15% since this resistance. Now, notable liquidation zones are positioned on either side of its current price. Above, we can note the zone around $4,150. Below, a large zone extends between $3,500 and $3,200. Even lower, the zone of $3,000 is clearly visible, demonstrating its importance as a key level. The approach of the price towards these levels could lead to a massive triggering of orders, thus increasing the risk of a period of heightened volatility for the cryptocurrency. These zones therefore represent crucial points of interest for investors.

Forecast for Ethereum Price (ETH)

• If the Ethereum price maintains above the $3,500 zone, a bullish continuation could be anticipated, with a recovery target around $4,100 to $4,200. The next significant resistance to watch is around $4,650. If this bullish movement continues, reaching $5,000 may be considered, representing an increase of about 33%.

• If Ethereum fails to maintain above $3,500, a pullback towards $3,250 may be envisaged. The next key support, should the bearish movement continue, is around $3,000. Even lower, we can note the level of $2,400, which would imply a drop of about 35%.

Conclusion

Ethereum confirms its potential by consolidating a bullish trend supported by solid technical indicators. Although its recent momentum was slightly weakened by market fluctuations, the cryptocurrency continues to generate increasing interest, a testament to its resilience and capacity to progress. Therefore, it will be essential to closely monitor the price reaction at key levels to validate or adjust the current forecasts. Finally, let’s recall that these analyses are based solely on technical criteria, and that the price of cryptocurrencies can evolve rapidly based on other more fundamental factors.