In summary
Ethereum’s price shows bullish signs as it targets key resistance zones for further growth.
Whale activity is picking up, signaling increased confidence and potential support for Ethereum’s price action.
The RSI remains neutral to bullish, suggesting room for further upside despite a recent correction.
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Ethereum (ETH) price has risen by 6% over the past week, attempting to gather momentum for a move towards $4,000. The recent formation of a golden cross, coupled with the current RSI at 63.6, suggests the potential for further upside.
Furthermore, whale accumulation has continued, with the number of wallets holding at least 1,000 ETH recovering after a brief dip in early January. As ETH’s price hovers near crucial support and resistance levels, maintaining bullish momentum will be critical in determining whether it can sustain its upward trajectory or face a correction.
ETH’s RSI Retreats from 70
Ethereum’s Relative Strength Index (RSI) currently sits at 63.6, after surpassing the overbought threshold of 70 between January 3rd and 4th. The RSI measures the speed and magnitude of price movements on a scale of 0 to 100, providing insights into market momentum.
A reading above 70 indicates overbought conditions, suggesting a potential correction, while a reading below 30 signals oversold conditions, which could point to a price rebound. ETH’s current RSI below 70 suggests that although buying pressure has eased,
At 63.6, ETH’s RSI suggests a neutral to bullish outlook in the near term. The retreat from overbought levels could indicate that the asset is entering a period of consolidation or a minor correction as traders take profits. However, the RSI remains comfortably above 50, highlighting continued buying interest. If the RSI climbs back towards 70, ETH could see renewed upward momentum, but further declines below 50 may signal weakening bullish momentum, potentially leading to a broader price correction.
Ethereum Whales Resume Accumulation
The number of Ethereum whales holding at least 1,000 ETH reached a monthly high of 5,634 on December 25th before declining to 5,604 on January 2nd. Monitoring whale activity is crucial as these large holders can significantly influence market trends.
An increase in whale accumulation often signals growing confidence in the asset, which can drive prices higher, while a decline could indicate decreasing interest or selling pressure.
After reaching 5,604 on January 2nd, the number of whales began to rise again and currently stands at 5,615. This resurgence in whale activity suggests renewed interest from large investors, which could support ETH’s price in the near term.
If the upward trend in whale accumulation continues, it could signal growing market confidence and increased buying pressure, potentially driving the price higher. Conversely, any decline in whale activity could signal hesitation among large investors, which could weigh on ETH’s momentum.
ETH Price Prediction: Will the $3,543 Support Hold?
Ethereum’s price recently formed a golden cross on January 4th, a bullish signal that occurs when the short-term EMA crosses above the long-term EMA. While ETH’s price has yet to see a significant surge following this formation, the technical setup suggests the potential for upward momentum.
If the bullish trend strengthens, supported by the RSI levels and renewed whale activity, ETH’s price could test the resistance at $3,827. A breakout above this level could pave the way for further gains, targeting $3,987 next.
However, the support level at $3,543 is crucial for ETH to maintain its current upward trajectory. If this support fails, ETH could face increased selling pressure, potentially reversing its momentum. In such a scenario, ETH could retest lower levels, with the key support zones at $3,300, $3,200, and $3,096 coming into focus.
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