Ethereum’s price rally towards $4,000 may be delayed as key metrics show neutral momentum and cautious whale activity.
Recently, Ethereum (ETH) witnessed a moderate price rally of about 6% in the past week, while now trading within a range as marked by resistance at $3,523 and support at $3,220. Having increased to a modest level in recent days, the ETH price remains below the awaited mark of $4,000 and analysts said it could be delayed till the end.
Ethereum (ETH) Struggling To Breach $4,000 End
Ethereum’s performance in December has been disappointing for many who would have loved a strong rally past the $4,000 mark. Though ETH has managed to hold out, almost gaining nearly 6% over the past seven days, the price remains confined within a very tight range of key support and resistance levels.
Currently, Ethereum’s price is consolidating between $3,523 resistance and $3,220 support. This suggests that the price movement of Ethereum has stopped and lacks any momentum on either side.
RSI Analysis: Lack of Momentum in Ethereum
(ETH) The relative Strength Index is at 50.21, which is in the neutral zone. The RSI has oscillated between 35 and 55 since December 20, showing that there has been no substantial upward or downward movement in the last week.
The RSI is an important momentum indicator that shows the magnitude of price moves. Generally, readings above 70 signal overbought conditions, and corrections may be seen, whereas readings below 30 point to oversold conditions, and prices might rebound. An RSI of 50.21 represents a neutral market where the bulls have not been overpowered by the bears or vice versa in the price.
Ethereum Whale Activity: Consolidating but Guarded
Whale addresses with more than 1,000 ETH balances are tracked for their transactions as they influence market sentiments. On December 25, this number stood at a high of 5,634 since September. This was followed by a fall to 5,631 the next day, indicating cautionary behavior in the aftermath of the increase.
The increase in large holders’ activity indicates that people have confidence in Ethereum, but the slight dip may mean that market participants are waiting for a clearer direction before making big moves. This stabilization at high levels indicates that ETH could hold the price up in the short term, but any major price movement might depend on a shift in whale behavior.
Ethereum Price Prediction: Consolidation or Breakout?
At the moment, Ethereum’s price is trading in a well-defined range with a resistance level at $3,523 and support at $3,220. EMA indicators show a minor downtrend with short-term averages located below long-term averages. Such a setup is typically considered to be an indicator of a weakening bearish trend or even a consolidation period.
If Ethereum’s price can break above the resistance level of $3,523, it may look for higher targets, such as $3,827 and $3,987. But if the support at $3,220 fails, Ethereum could drop further to the next critical support level of $3,096.
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Conclusion: While Ethereum’s price has shown resilience with a 6% gain over the past week, its path to the $4,000 mark appears to be delayed, with price consolidation and neutral momentum. Whale activity is stable but cautious, indicating a wait-and-see approach. For now, Ethereum’s next significant move depends on whether it can break the current resistance or hold critical support levels.
Watch out for the traders and investors on momentum shifts decisively given this neutral RSI coupled with price action being range bound; this might see a considerable jump in prices should the Ether break from the price level, though consolidation shall prevail in the short-term forecasted weeks.
Also Read: Solana Price Surge Potential: Analyzing The Path To Recovery And Growth
