cryptonewsz.com
During Wednesday’s U.S. trading hours, the crypto market experienced a slight downtick as Bitcoin price reverted from $108k resistance. With bearish momentum accelerating to the altcoin market, the Ethereum price failed to sustain a $4000 breakout. However, the onchain data shows that long-term holders remain unfazed and are steadily increasing their $ETH positions.
Currently, the $ETH price exchange hands at $3,877 with an intraday loss of 0.42%. According to Coingecko, the asset’s market cap is at $467.2 Billion, while the 24-hour trading volume is at $34.8 Billion.
Key Highlights:
- An active accumulation from Ether’s long-term holds in 2024 signals a high-momentum rally in the coming year.
- The ascending trendline in the 4-hour chart and $3,500 stands as key support for the Ethereum price.
- The formation of a double bottom pattern could delay the $4,000 breakout.
Long-Term Holders Hint at Early ‘Belief Phase’ for $ETH
$ETH’s long-term holders are showing strong conviction, signaling the potential for a major price rally, as seen in previous bull cycles. On-chain data from Ali Charts reveals that during the past two bull cycles, Ethereum price entered a parabolic rally when long-term holders shifted into greed mode.
Currently, the market appears to be in the early stages of the belief phase, suggesting that the big move for $ETH could still lie ahead.
Adding to this optimism, data shared by IntoTheBlock highlights that long-term Ethereum holders have steadily increased their collective balance throughout the year. The figures show that approximately 110 million $ETH is now held by these investors, reflecting unwavering confidence and a continued accumulation trend.
Ethereum Price Reversal Looms as Sellers Defend $4K Resistance
The second largest cryptocurrency, Ethereum has been struggling to surpass $4,000 despite the recent high in Bitcoin. In the last two weeks, the 4-hours chart shows two long-wick rejection candles at the overhead trendline, signaling the high selling pressure ahead.
A bearish reversal from $4k could plunge the altcoin 10% down to $3,500, seeking support at the 50-day Exponential moving average. A potential breakdown could further accelerate the selling and drive major correction.
With the broader market so bullish, the Ethereum price would likely hold the $3,500 or renew bullish momentum at the support trendline. A flip above $4,000 could bolster a new All-time-high rally for $ETH and parabolic growth.