Ethereum Price Drops 1% as Demand for ETH ETFs Grows – Will ETH Rebound Above $4000?

Highlights:

• Ethereum price plunges 1% to trade at 3,700 as trading volume drops. 
• Despite the recent drop, institutional demand for ETH ETFs supports price action.
• According to Matrixport, the demand for Ethereum ETFs is growing, and the price of ETH is expected to rise significantly in 2025.

The Ethereum price has decreased by 1% to trade at 3,700, following the market-wide sell-off that shook the crypto market. Its daily trading volume has notably plunged 20% to $51.29 billion, showing a fall in market activity. Despite the fall, the cryptocurrency is still in the green this month, boasting a 16% rise and a 64% increase in a year.

Despite the recent drop, institutional demand for ETH ETFs supports price action. Analysts remain optimistic, viewing the dip as healthy. According to Matrixport, Ethereum ETFs are growing, and the price of ETH is expected to rise significantly in 2025.

#Matrixport Today 📉 – Dec 11: Surging #Ethereum #ETF Demand Signals Potential for Higher Prices in 2025 #cryptomarket #MarketTrends #MarketInsights #CryptoInvesting #Crypto #BTC #ETH pic.twitter.com/xV5MsxrX9l

— Matrixport Official (@Matrixport_EN) December 11, 2024

Ethereum Statistical Data

Based on CoinmarketCap data:

• ETH price now – $3,702
• Trading volume (24h) – $51.29 billion
• Market cap – $445.8 billion
• Total supply – 120.44 million
• Circulating supply – 120.44 million
• ETH ranking – #2

Ethereum Price Retests the $3,624 Support Level, Is a Rally to $4000 Imminent?

The crypto market is navigating a sharp correction after recent rallies. BTC dipped below $95K, and ETH tested the $3,500 mark. However, despite these declines, many cryptos are still up significantly this month, and fundamentals remain strong. To begin with, the Ethereum price is still holding above all the moving averages, and the Golden Cross in the market affirms the bullish grip. 

Despite the slight pullback, the bulls still have the upper hand, as the token has retested the $3624 level. The support levels at $3158 and $3001, coinciding with the 50-day and 200-day SMAs, tilt the odds towards the buyers. If the $3624 support level stays intact, the Bulls could build momentum and reclaim the $4000 mark soon. 

For long-term believers, this dip might present an opportunity to buy at lower prices. Traders interested in holding long positions in ETH and possibly desire to seek more exposure to the token may do so assured that the golden cross pattern is a bullish gesture.

The RSI is currently at 56.49, above the 50-mean level. This suggests that the buying pressure is more intense than the selling pressure. Moreover, there is more room for the upside before ETH is considered overbought. 

On the other fence, the Moving Average Divergence Convergence(MACD) introduces a new bearish outlook, manifested by the blue MACD crossing below the orange signal line. This signals that the buy signal is delayed. Selling pressure could gain momentum if the MACD continues to drop toward the neutral zone (0.00) and later into the negative region.

What Next for the Ethereum Price?

The technical outlook for the ETH market is mixed; however, the odds tend to lean towards the upside. The ETH price could rise if the bulls capitalize on the rounding bottom pattern, which often signals a bullish reversal. If the support levels stay intact also, the ETH price could rally, obliterating the $4,000 mark soon. On the downside, if the correction in the ETH market continues, the token will plunge, chasing the $3,531 mark.