Ethereum (ETH) Requires Swing Low Confirmation for a Surge to $4,500


– Ethereum price attempts to form a higher low while wavering beyond a critical support level of $3,912.
– On-chain metrics indicate ATH possibilities if Ethereum overcomes the resistance zone at $4,200.
– Breaching the support barrier at $3,669 will form a lower low, canceling the bullish tale.

Ethereum (ETH) price hovers around an inflection level as bulls try to launch a bullish system. If successful, the largest altcoin can trigger a near-term upswing that requires some condition to be a massive bullish rally.

ETH at Crossroads

Ethereum had its price rallying 13% from 15 December to 16 December, following a twice bounce off the support zone of $3,669. The upward action saw ETH slicing the overhead obstacle near $3,912, and the alt tries to flip this level into support at the moment.

Success here will form a higher low, confirming a bullish trend start. In such a case, Ethereum will try to overpower the $4,155 obstacle and gather liquidity beyond the value area. Meanwhile, amplified buying momentum is essential to flip the resistance before ETH retest the ceiling at $4,433. With that, the leading ‘smart’ contract coin will match towards $4,500 without challenges.

Though the technical picture unveils the last resistance zone near $4,788, on-chain metrics show that overpowering $4,500 will mean a free ride towards $5,000 for ETH. The GIOM model indicates that the underwater investors’ cluster stands near $4,236. In this area, 1.24 million crypto addresses that bought around 12 million Ethereum tokens remain ‘out of money.’

Overpowering this obstacle will push the underwater holder in the ‘profit’ region, reducing the general selling pressure. Also, Ethereum’s 30-day MVRV model supports this bullish narrative. This on-chain metric shows the loss/profit average by market players that bought Ethereum in the past month. ETH’s monthly MVRC wavers at – 10%, showing that near-term investors are in losses. Nevertheless, -10% represents an opportunity region. Long-term holders buy at around this mark. That is why Ethereum has trend reversal chances.

If ETH fails to maintain above the $3,912 mark, it will confirm bullish momentum weakness. Such actions will knock the token down towards the nearest foothold at $3,669. Though buyers have a comeback opportunity in this area, a lower low beneath it will cancel the bullish outlook. That can see ETH revisiting $3,415.

Leave a Reply

Your email address will not be published.