With a surge in buying pressure, Ethereum prepares for a new 52-week high with $4,631 and $5,316 targets in focus.
With a market cap of $483M, Ethereum ETH $4 014 24h volatility: 1.8% Market cap: $483.37 B Vol. 24h: $43.62 B , the biggest altcoin, is back in action with the $4,000 breakout. Reclaiming a critical milestone, the market anticipates a surge to a new 52-week high.
The market recovery is generating bullish anticipation among Ethereum holders. Will the recovery rally, which is reclaiming the $4,000 mark, reach $5,316?
Ethereum is challenging the 100% Fibonacci level at $4,093, creating its third consecutive positive candle in the daily chart. This challenge is the 52-week high and presents a possibility of a new breakout rally.
Currently, the Ethereum price trend shows an increase in momentum, supporting the falling channel breakout rally and boosting the underlying sentiment.
With the recovery run at play, the 100- and 200-day simple moving average lines are preparing for a bullish crossover. Furthermore, the MACD and signal lines are on the verge of regaining positive alignment.
Hence, the technical indicators are ready to flash a buy signal, and the price action suggests a new 52-week high.
Based on the Fibonacci levels, a new 52-week high will likely result in a high-momentum rally for Ethereum, potentially reaching the 1.618 Fibonacci level at $5,316. However, a minor resistance at $4,631 or the 1.272 Fibonacci level could act as a midway pit stop.
Conversely, a bearish reversal will likely result in a massive pullback and potentially end 2024 at $3,600.
The Ethereum price trend in the 4-hour chart showcases a rising channel pattern holding the ETH trend. The ETH price showcases a positive cycle, gaining momentum within the channel pattern.
Reclaiming the $4,000 psychological mark, Ethereum is inching closer to the R1 pivot level at $4,137. Bouncing off from the 50 SMA line, the recovery run limits the chances of a bearish crossover between the 50-day and 100-day SMA lines.
Based on the rising channel pattern, the uptrend continuation will likely reach the overhead resistance trend line near the R2 pivot level at $4,317. Hence, the short-term upside for ETH highlights an upside potential of nearly 8-10%.
On the flip side, a bearish turnaround, losing the $4,000 psychological mark, could result in a pullback to $3,829.
With the US Bitcoin spot ETF recording a massive daily net inflow of $6,386 million, the Ethereum spot ETFs are maintaining a positive trend. The total daily net inflow for the US Ethereum spot ETFs recorded $51.13 million on December 16, leading to a bullish surge.
BlackRock acquired 30.72 million worth of Ethereum, with Bitwise being the second biggest purchaser, with an inflow of $8.73 million. Since November 22, the Ethereum ETFs have maintained a positive daily net inflow, marking 16 consecutive positive days.
Over the past three weeks, the Ethereum ETFs have recorded a net inflow of nearly $220 million. Furthermore, their total net assets stand at $14.28 billion, revealing a surge in institutional support for Ethereum as the bull market begins.
Independent Analyst Martinez Ali highlighted a pattern noticed over the past two bull cycles to support the chances of a bullish recovery for Ethereum. In his recent tweet, Ali highlighted Ethereum’s price went for a parabolic rally when long-term holders NUPL turned 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
This occurred in the 2021 bull rally and the 2017 bull run. Currently, the NUPL of the long-term holders is within the belief zone, reflecting room for recovery. Considering the Ethereum price break creates a new 52-week high, the NUPL of long-term holders could enter a zone of euphoria, resulting in a new parabolic rise for Ethereum.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
