Ethereum (ETH) has experienced a significant price retracement, decreasing by more than 15% over the past two weeks to trade at approximately $3,375 as of Friday, December 27, during the early European trading session. The large-cap altcoin, boasting a robust market valuation of around $406 billion and a 24-hour average trading volume close to $23 billion, has shown resilience by bouncing back from a critical support level.
Market Dynamics and Future Projections
With the TOTAL2 index having retested its previous all-time high around $1.6 trillion, Ethereum’s price is strategically positioned to potentially surge towards the $5,000 mark in the near future. Notably, the ETH/BTC trading pair has been developing a macro reversal pattern, further strengthened by the bullish divergence observed on the weekly Relative Strength Index (RSI).
Ethereum Whales Prepare for Major Uproar
Over the past two years, Bitcoin has outperformed many large and mid-cap altcoins, prompting whale crypto investors to strategically reposition their portfolios in anticipation of a parabolic altseason. Additionally, Ethereum’s Open Interest (OI) and trading volume have recently reached a new all-time high, exceeding $23 billion.
On-chain data analysis from Coinglass indicates a downward trend in the overall supply of Ethereum on centralized exchanges, which decreased from 16.12 million on November 29 to approximately 15.3 million at the time of writing. This decline is primarily driven by the increasing demand from U.S. spot Ether ETF issuers, including BlackRock’s ETHA and Fidelity’s FETH. These issuers have collectively attracted over $2.64 billion in cumulative net inflows since inception, resulting in total assets under management amounting to approximately $12.01 billion.
Recently, U.S. spot Ether ETFs recorded net cash inflows of about $117 million, with a total trading value of approximately $390 million. Simultaneously, on-chain data highlights a significant withdrawal of 1,500 Ether, valued at $5.21 million, from Binance within the last 24 hours.
Ethereum rebounds from crucial support, setting the stage for a potential rally. Explore our Ethereum price prediction for the latest market insights!
Technical Analysis: What Lies Ahead for Ethereum?
From a technical perspective, Ethereum’s price has rebounded from a descending logarithmic trend established year-to-date, indicating a potential bullish surge in the near term. Additionally, Ethereum has consistently remained above the weekly 50 Moving Average over the past two months.
Consequently, Ethereum’s price is optimally positioned to potentially reach $5,232 shortly, aligning with the 1.618 daily Fibonacci Extension level.
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