Ethereum Price Surges 0.5% as Long-Term Holders Increase – Analysts Predict $4,000 Target

Highlights:

• Ethereum rose 0.5% to $3,395 with a 42% volume spike.
• Long-term Ethereum holders climbed to 75.1%, overtaking Bitcoin’s decline.
• Ether ETF inflows doubled to $2.1B, driven by DeFi, staking, and SEC reforms.

The Ethereum price has soared 0.5% in the last 24 hours to trade at $3,395 as of 8 a.m. EST on a 42% pump in trading volume to $17 billion. Data from IntoTheBlock shows that the share of long-term Ethereum holders is up from 59% back in January to 75% by the end of 2024, while Bitcoin’s share of long-term holders shrunk from 70% to 62% in the same period. As of December 30, 2024, 75.1% of Ethereum holders were long-term compared to Bitcoin’s 62.3%.

This chart shows the percentage of long-term Bitcoin and Ether holders over the past year.

While the share of long-term Bitcoin decreased, the percentage of long-term ETH holders climbed, surpassing that of Bitcoin early in the year. pic.twitter.com/F7ghaSq66T

— IntoTheBlock (@intotheblock) December 29, 2024

This increasing confidence in Ethereum is also seen in a number of market indicators, from a doubling of spot Ether ETF inflows to $2.1 billion in December from $1 billion in November. Experts said this optimism flows from the development of Ethereum, its role in decentralized finance, and future regulatory shifts, such as under the Trump administration, the overhaul of the SEC, and the addition of staking to Ether ETFs.

In contrast, price oscillations are seen, and some analysts suggest a future surge in prices despite the recent selling by long-term holders. A change in holding behavior seems to indicate growing beliefs in Ethereum’s long-term potential into 2025.

Ethereum Price Rebounds on a Strong Support Zone

The ETH/USDT pair currently shows bullish signs in the 4-hour timeframe, having rebounded from a strong support level of $3,387.71. This support level coincides with the 200-period moving average, hence a very important zone where buyers are stepping in to prevent further price declines. The price is currently trading at $3,425.32, indicating a shift in momentum as bulls attempt to regain control.

The 50-period moving average, currently at $3,661.85, is providing resistance. This moving average slopes downwards, reflecting the previous bearish pressure. However, it may form a bullish crossover, crossing above the 200-period moving average, thus signaling a strong trend reversal in favor of the bulls.

Another bullish indication is the breakout from a consolidation phase near the support level, shown by the green arrow on the chart. This means buyers are strong enough to move the price beyond its previous range. The breakout is important in confirming the firmness of the support level and, hence, providing the ground for upward movement.

Bullish Technicals Signal an Uptrend Ahead

Indicators of momentum also favor the bullish view. The RSI is now at 55.16, which indicates that bullish momentum is gathering but has yet to reach the overbought territory. A reading of RSI above 50 usually shows that buyers are in control, and any movement toward the 70 mark would confirm strong buying pressure for the Ethereum price. Traders will, therefore, be keenly watching the RSI for further scope of the strength in the current trend.

The immediate significant resistance lies at $3,661.85, where the 50-period moving average is sitting. A break above this level could leave the door open for a rally toward the $3,800 level, which acts as the next key resistance zone. A pullback could follow failure to break above $3,661.85 or rejection at this level. If that happens, the $3,387.71 support level would be in focus again, and that support could further break lower if it doesn’t hold.