- Ethereum holds $3,500 support despite sell-offs, maintaining bullish momentum.
- Analysts highlight $3,890 resistance; potential upside targets approach $4,000.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is witnessing a bullish surge. It has climbed 7% in the last 24 hours and recorded a 17% rise over the past week. Despite this rally, the trading volume dipped 29% on the same day, reflecting mixed market sentiment.
Research data reveals that ETH’s monthly average sell-off reached $400 million in negative net taker volume, rivaling the selling pressure observed during its last cycle’s peak at $4,800.
Moreover, Analysts suggest that Ethereum’s current position above $3,500 signifies strong support for potential upward movement. This level’s resilience was reinforced during recent sell-offs, with market experts noting that a breach below $3,500 could significantly dent sentiment across the altcoin market.
Highlights include key support levels for major cryptocurrencies, stating, “94k/3.5k/200. These are the levels I think the market has established as key support levels. Lose this, and holding alts might not seem viable. Hold these, and it’s still game on.”
In addition, US spot ETH ETFs have shown robust demand. On December 10, daily inflows reached $305.74 million, marking 12 consecutive days of inflows and supporting ETH’s bounce above $3,500.
Can ETH Surge Past $4k?
Technical analysis points to immediate upside targets of $3,690 and $3,720, with potential extensions to $3,800, $3,900, and $4,000. These levels correspond to high concentrations of leveraged positions, suggesting a possible liquidity hunt. However, if ETH fails to clear the $3,890 resistance, it may retest lower supports at $3,750 and $3,650.
Technical indicators remain bullish. The hourly MACD is gaining momentum, and the RSI is positioned above the 50 zone. For now, $3,750 acts as a major support level, while $3,890 and $4,000 represent critical resistances for Ethereum’s next potential move.
