Highlights:
- Ethereum continues trending upwards despite strong competition from newer L1s
- ETH is currently headed for $4000 if $3539.4 resistance gives way
- Ethereum’s stability relative to competitors could pave the way for a rally
Ethereum continues to show rising bullish sentiment after what seemed like an eternity of bearish momentum. After recently rallying through the $3000 mark, Ethereum is now oscillating around $3500 putting it within range of the $4000 mark. At the time of going to press, Ethereum was trading at $3501.75, up by 4.20% in the day.
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However, intra-day trading volumes were down by 4.48% when going to press to stand at $32.74 billion. This has put Ethereum’s market cap at $421.88 billion. With the gradual price rise, the odds are high that Ethereum could start to see FOMO build up in the short term.
Technical Analysis – Ethereum Price Gains Momentum as It Approaches Key Resistance
From the charts, Ethereum is gaining upside momentum after establishing strong support at $3058.7. For the ongoing rally to continue, Ethereum needs to rally through the multi-month resistance at $3539.4. A rally through this resistance would put Ethereum on course to test $4000.
On the other hand, if Ethereum loses momentum, the key level to watch would be $3332.8, now a key multiple-day support level. However, with bullish sentiment on the rise across the cryptocurrency market and Ethereum continually rallying through resistance levels, the odds for more upside are higher. In the short term, the key target to watch is $4000. Multiple factors support a possible rally in the price of Ethereum in the short term.
#Ethereum is just getting started and it will not stop until it reaches 5 figures pic.twitter.com/RRcXMHkwMm
— Yoddha (@CryptoYoddha) November 25, 2024
Ethereum May Have Bottomed Out
Eth/BTC is usually one of the most watched indicators by investors. That’s because it is usually an indicator of when the Ethereum bull run starts, which uplifts the entire Ethereum ecosystem with it. Since 2021, the Eth/BTC pair has been going down. However, the downside for this pair accelerated has accelerated since January, mirroring the sustained rally in Bitcoin’s price.
#Ethereum didn't break upwards yet.
It needs to break 0.036 BTC and flip that level for support.
Once that happens, I'm assuming that the #Altcoins will go way higher. pic.twitter.com/A8R2HKj1qw
— Michaël van de Poppe (@CryptoMichNL) November 25, 2024
Eth/BTC May Have Bottomed-Out
Currently, the Eth/BTC pair has been down by 40% since January, and recently, a major drop was seen after the election of Donald Trump, who put Bitcoin on course to hit $100k. The selloff of the Eth/BTC pair has also been accelerated by the fact that Ethereum is facing competition on multiple fronts.
Ethereum has a use-case as a store of value but has to contend with Bitcoin on this front. On its core use case in the smart contracts space, Ethereum has to contend with strong competition from emerging networks such as Solana. Already, Solana regularly outperforms Ethereum in fees generated and the number of transactions happening on the network.
All these have added to the selling pressure on the Eth/BTC pair. However, this selloff is unlikely to go on forever. In fact, on most technical analysis metrics, the Eth/BTC metric has been in oversold territory for months. This means investors seeking good deals could start looking to Ethereum in the short to medium term.
Ethereum Spot Price Could Trigger FOMO
Adding to the fact that the Eth/BTC pair is currently oversold by a huge margin, is the fact that Ethereum’s spot price is starting to show upside momentum. After trading below $2500 for months, Ethereum has recently added $1000 to its price to trade at its current price of $3500. With buy orders on the rise, especially from whales, ETH could soon rally to $4000.
This is a big deal as it would inspire investors’ confidence that Ethereum is back. The FOMO this would trigger could see Ethereum rally to its most recent all-time highs and potentially make new ones as the bull run progresses. This makes the ongoing price action for Ethereum one to watch in the short term.
Ethereum Stability a Confidence Boost for Investors
Ethereum could also get a boost from the fact that it has proven itself in the L1 space. A lot of Ethereum competitors hit the market with the promise of high speeds and low costs. However, this is usually at the expense of decentralization, which usually shows in the form of network outages, especially during peak usage. Ethereum’s continued stability after years of use is likely to drive its draw in institutional money, especially as confidence returns to the market that Ethereum has bottomed out.
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