Ethereum Breaks $4,000 Mark, Eyes Potential Rise to $5,316
Ethereum (#ETH), with a market cap of $483 million, has surpassed the $4,000 mark. This recovery has generated bullish anticipation among holders, who speculate on a potential rise to $5,316.
Ethereum Crossing $4,000 Teases New Breakout Run
Ethereum is testing the 100% Fibonacci level at $4,093, marking its third consecutive positive daily candle. This presents an opportunity for a breakout rally as it approaches the 52-week high.
The current price trend indicates increasing momentum, supporting the falling channel breakout and enhancing market sentiment.
A bullish crossover of the 100- and 200-day simple moving averages is imminent, with MACD and signal lines nearing positive alignment. Technical indicators suggest a buy signal, indicating a new 52-week high is likely.
According to Fibonacci levels, reaching a new 52-week high could trigger a rally towards the 1.618 Fibonacci level at $5,316, although resistance may occur at $4,631 or the 1.272 level.
Conversely, a bearish reversal could lead to a significant pullback, potentially ending 2024 at $3,600.
The Rising Channel in 4-Hour Focuses Short-term Target at $4,317
The 4-hour chart shows a rising channel pattern in Ethereum's price trend, indicating a positive cycle within this pattern. As Ethereum reclaims the $4,000 mark, it approaches the R1 pivot level at $4,137.
Bouncing off the 50 SMA line limits the chances of a bearish crossover between the 50-day and 100-day SMA lines.
Following the rising channel pattern, continuation of the uptrend may reach the overhead resistance near the R2 pivot level at $4,317, suggesting a short-term upside potential of 8-10%. A bearish turnaround below $4,000 could result in a pullback to $3,829.
Ethereum ETFs Inflows Hit $51.3M
US Ethereum spot ETFs recorded a daily net inflow of $51.13 million on December 16, contributing to a bullish surge. BlackRock acquired $30.72 million worth of Ethereum, while Bitwise added $8.73 million. Ethereum ETFs have seen 16 consecutive days of positive inflows since November 22.
Over three weeks, these ETFs accumulated nearly $220 million in net inflow, bringing total net assets to $14.28 billion, highlighting increased institutional support for Ethereum as the bull market develops.
Will the Long-term Holders Turn Greedy?
Analyst Martinez Ali observed patterns from previous bull cycles suggesting a bullish recovery for Ethereum. He noted that Ethereum experienced parabolic rallies when long-term holders shifted into “greed” mode.
In the past two bull cycles, #Ethereum $ETH went parabolic when long-term holders shifted into greed mode. Right now, they’re only in the early stages of the belief phase. The big move could still be ahead! pic.twitter.com/warxPOlSFj
— Ali (@ali_charts) December 17, 2024
The NUPL of long-term holders is currently in the belief zone, suggesting potential for recovery. If Ethereum achieves a new 52-week high, long-term holders' NUPL may enter a euphoria zone, possibly leading to another parabolic rise for Ethereum.