Ethereum Price Could Rally to $3,918 if the Bulls Obliterate the Resistance Key at $3,519

Highlights:

• Ethereum price drops almost 1% to $3,393 as trading volume spikes.
• This comes following the waning crypto market, with Bitcoin sitting below the $93,000 mark.
• Increased buying appetite will see the Altcoin break through the $3,519 mark to $3918 soon.

As of this writing, the Ethereum Price has dropped almost 1% to $3,393. However, its daily trading volume has increased by 39% to $25.37, showing growing investor confidence in ETH. The recent fall comes as Ethereum (ETH) is having increasing issues as Bitcoin sits below the $93,000 mark and the cryptocurrency market dwindles. After a tough month in which Ethereum could barely sustain critical levels, it is now testing key support areas. 

Despite the bearish sentiment, some investors are taking advantage of the dip by adding more ETH. BlackRock’s spot Ethereum ETF has surpassed $3.5 billion in ETH holdings, signalling robust investor demand.

🚨 BREAKING: @BlackRock’s #EthereumETF holdings surpass 1,071,415 $ETH, valued at over $3.6B! 📊

🚀 Big moves in the world of crypto ETFs! 🌐#Ethereum #BlackRock #CryptoNews #ETH pic.twitter.com/9eIQvm34wf

— Crypto News (CoinGape) (@CoinGapeMedia) December 31, 2024

Ethereum Statistical Data

Based on CoinmarketCap data:

• ETH price now – $3,393
• Trading volume (24h) – $25.37 billion
• Market cap – $408.34 billion
• Total supply – 120.45 million
• Circulating supply – 120.45 million
• ETH ranking – #2

ETH Price Pushes Into a Consolidation Channel: Will the Bulls Breakout?

The Ethereum Price has pushed into a consolidation phase as the bulls strive to regain control above the 50-day SMA. Meanwhile, there is more room for the upside, as the bulls have established strong support at $2987. Traders looking to hold long positions in ETH can do so assuredly by the Golden Cross in the market. Meanwhile, the consolidation phase may act as an accumulation period before the bulls ignite a strong upward trajectory. 

Diving into the technical outlook, to be safe, the bulls must uphold higher support at $3519, which is acting as immediate resistance, to encourage already sidelined investors to join the uptrend without worrying about sudden corrections. Moreover, the buyers are strong enough to move the price beyond its previous range in the consolidation channel. The breakout is essential in confirming the firmness of the support level and, hence, providing the ground for upward movement.

The RSI is now at 44.95, which indicates that bullish momentum is gathering but has yet to reach the 50-mean level. A reading of RSI above 50 usually shows that buyers are in control, and any movement toward the 70 mark would confirm intense buying pressure for the Ethereum price. Traders will, therefore, be keenly watching the RSI for further scope of the strength in the current trend.

A closer look at the MACD indicator introduces a new bearish outlook as it plunges below the neutral(0.00) area. This is manifested as the blue MACD line crossed below the orange signal line. This suggests that it is pulling away from the orange signal line, which means it is delaying the buy signal, giving the bears the upper hand.

Ethereum Price Outlook

That said, if the sellers persist and eventually gain control, bolstered by the bearish MACD indicator, Ethereum’s price could breach the $3227 support. Nevertheless, increased selling pressure would see the Ethereum price dwindle to the $3030 support area. 

On the flip side, if the consolidation phase acts as an accumulation period, the bulls might break out above the $3,519 barrier. In a highly bullish scenario, the altcoin could rally to $3,918.