Is Ethereum Price Ready to Rebound Above $3,379?

Highlights:

• Ethereum price plummets 12% to $3,226 following market-wide sell-offs. 
• Despite the drop, its daily trading volume has soared 47% to $75.51 B, signaling renewed investor interest.
• There are projections of an imminent recovery in the Ethereum price moving forward. 

Ethereum Price has dropped 12% to $3,226 following a market-wide correction. Despite the bearish outlook, its daily trading volume has skyrocketed 47% to 75.51 billion, suggesting a spike in investor interest. 

Ethereum Statistical Data

Based on CoinmarketCap data:

• ETH price now – $3,226
• Trading volume (24h) – $75.51 billion
• Market cap – $388.86 billion
• Total supply – 120.45 million
• Circulating supply – 120.45 million
• ETH ranking – #2

Is Ethereum Price Ready to Retake the $3379 Support Level?

The Ethereum Price has plunged below the lower boundary of the rising parallel channel, reinforcing the bearish outlook. This comes following a market-wide correction, with Bitcoin price sliding below the $95,000 mark. Moreover, the declines have notably affected Bitcoin and ETH ETFs, which have seen outflows after a prolonged period of positive growth. 

Traders and investors have shifted their attention to Ethereum as crypto prices wobble. The token’s trading volume soared by more than 47% to $75.51 billion, ranking #2 among other cryptos.

Meanwhile, the Ethereum price holds above one of the crucial bull market indicators, the 200-day Simple Moving Average (SMA), after correcting from an eight-month high of $4,016. Traders interested in holding long positions in ETH and possibly desire to seek more exposure to the token may do so assured that the golden cross pattern on the daily chart timeframe is a bullish gesture.

A golden cross occurs when a short-term moving average (50-day SMA) crosses above a long-term moving average (200-day SMA). How the ETH price reacts to support at $3,000 will likely determine its direction in the short term. As a springboard, this support would allow bulls to build momentum as more traders buy into ETH, thus creating a suitable environment for a rebound above $3,379.

The RSI suggests waning bullish momentum. Its position below the 50-mean level at 37.20 indicates intense selling pressure. However, the bulls may buy the dip at this level, resulting in the ETH price rebounding above the key resistance at $3,379. 

However, the Moving Average Convergence Divergence (MACD) cautions that traders must be careful when placing buy orders. A sell signal sent on December 9 implies that bears could still influence Ethereum Price’s direction. As the MACD drops to the neutral area (0.00), traders should be keen on the next buy signal.

Ethereum Price Outlook

Despite the bearish picture, there are projections of an imminent recovery in the Ethereum price moving forward. One factor boosting the rebound is Ethereum’s recent advancements in mainstream finance. This follows Deutsche Bank’s adoption of a privacy-focused blockchain solution using zero-knowledge-proof technology.

JUST IN: 🇩🇪 Germany's largest bank, Deutsche Bank, is developing its own Ethereum L2 blockchain based on ZKsync 🚀

— Crypto India (@CryptooIndia) December 18, 2024

Moreover, if the $3,000 support level holds, the bulls will gain stamina propelling the ETH price higher. In such a case, the ETH price could rebound to the $3,379 mark. In a highly bullish case, the altcoin would retest the $3,900 mark or above to $4,016. 

Conversely, if the bears capitalize on the sell signal from the MACD and the falling momentum in the RSI, the Ethereum price would fall through. While the levels between $3,111 and $3,379 remain critical to watch, only a slip below $3,000 would ignite a panic sell-off.