As Bitcoin’s price retreated from $108k resistance, the cryptocurrency market saw a small decline during Wednesday’s U.S. trading hours. An acceleration of bearish momentum in the altcoin market prevented Ethereum’s price from sustaining a $4000 breakout.
However, the on-chain data reveals that long-term holders are unconcerned and are adding to their ETH holdings at a steady rate. With a loss of 0.42% so far today, the price of ETH is trading hands at $3,877. The asset’s market capitalization is $467.2 billion, and its 24-hour trading volume is $34.8 billion.
Key Highlights:
- An active accumulation from Ether’s long-term holds in 2024 signals a high-momentum rally in the coming year.
- The ascending trendline in the 4-hour chart and $3,500 stands as key support for the Ethereum price.
- The formation of a double bottom pattern could delay the $4,000 breakout.
ETH Holders Hint at Price Surge
ETH’s long-term holders suggest a significant price increase, similar to those observed in past bull cycles, may be imminent. When long-term holders went into greed mode during the last two bull cycles, the price of Ethereum underwent a parabolic rally, according to on-chain data. It suggests that the market is currently in the early phases of the belief phase.
That ETH’s big move might still be in the future. This hope is further supported by data released by IntoTheBlock, which shows that long-term Ethereum owners have gradually raised their total balance over the year. The data shows these investors own almost 110 million ETH, demonstrating their steadfast faith and ongoing accumulation tendency.
Ethereum Struggles at $4K Resistance.
Ethereum, the second-largest cryptocurrency, has been having trouble breaking $4,000. This is despite the recent spike in Bitcoin. The 4-hour chart indicates intense selling pressure ahead, with two long-wick rejection candles at the overhead trendline over the past two weeks.
In a bearish reversal from $4k, the altcoin may drop 10% to $3,500, with the 50-day Exponential moving average providing support. A possible breakdown would spur a significant correction and hasten the selling process even more.
Given the optimistic market, Ethereum Struggles will probably retain the $3,500 mark or regain its positive momentum at the support trendline. A flip above $4,000 might support parabolic growth and ETH’s fresh all-time high rise.
Summary
Ethereum has faced selling pressure and has struggled to break the $4,000 level. However, on-chain data indicates that long-term holders are aggressively collecting ETH, which could indicate a future rally. Ethereum is currently trading at $3,877, above essential support levels of $3,500. If Ethereum can break above $4,000, its value might skyrocket and set new records. A 10% decline is possible if a bearish reversal from $4,000; $3,500 is a key support level.
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