Ethereum (ETH) Price: Ethereum Shows Strong Support Above $3,900 Level
TLDR
Ethereum has broken above $4,000 again, showing a 30% gain over the past month and 80.5% increase since December 2023
Bitcoin’s new all-time high of $107,822 on December 16, 2024 appears to be driving ETH’s upward momentum
Trump’s pro-crypto stance and upcoming inauguration are contributing to positive market sentiment
ETH is currently 17.8% below its all-time high of $4,878.26 from November 2021
CoinCodex predicts ETH will reach a new peak of $5,094.65 by February 21, 2025, representing a potential 26.69% increase
Ethereum (ETH) has achieved another milestone in its price journey, breaking through the $4,000 barrier amid strong market conditions and growing investor confidence. The second-largest cryptocurrency by market capitalization has shown remarkable resilience, posting gains of 1.4% in daily trading and an impressive 30% increase over the past month.
The digital asset’s recent performance reflects broader market strength, with particularly notable gains over various timeframes. Weekly charts show an 8.1% increase, while the 14-day period demonstrates a 10.1% upward movement. Perhaps most striking is the year-over-year comparison, with ETH recording an 80.5% gain since December 2023.
Technical analysis reveals a bullish trend line forming with support at $3,940 on the hourly chart. The price action shows ETH trading above both the $4,000 psychological level and the 100-hourly Simple Moving Average, indicating strong buyer presence in the market.
The current rally appears to be closely tied to Bitcoin’s recent performance, with BTC reaching a new all-time high of $107,822 on December 16, 2024. As the market leader, Bitcoin’s price movements often set the tone for the entire cryptocurrency market, and Ethereum has historically shown strong correlation with BTC’s upward trends.
Ethereum Price on CoinGecko
Trading data indicates that Ethereum faces immediate resistance near the $4,070 level, corresponding to the 76.4% Fibonacci retracement level of the recent downward move from $4,107 to $3,946. A breakthrough above this level could open the path to test higher resistance points.
The next major resistance level stands at $4,120, followed by potential targets at $4,250 and $4,350. Market observers note that clearing these levels could potentially push ETH toward the $4,500 mark in the near term.
Support levels have established themselves at key points, with initial support near $3,980 and a stronger foundation at $3,940. These levels provide important price floors that could help maintain the current upward momentum.
The upcoming political transition appears to be playing a role in market sentiment. Donald Trump’s scheduled inauguration on January 20, 2025, has sparked optimism among crypto investors, given his administration’s pro-cryptocurrency stance.
Recent appointments, including a new SEC chair and White House crypto czar, have further boosted market confidence. These regulatory developments suggest a potentially more favorable environment for cryptocurrency adoption and growth.
Historical context shows that Ethereum still trades below its all-time high of $4,878.26, recorded in November 2021. The current price represents a 17.8% gap from this peak, suggesting room for further upward movement.
Technical indicators present a positive outlook, with the hourly MACD gaining momentum in the bullish zone and the RSI holding above the 50 mark. These metrics typically suggest continued upward pressure on price.
CoinCodex’s analysis projects optimistic targets for ETH, predicting a new all-time high of $5,094.65 by February 21, 2025. This forecast represents a potential increase of 26.69% from current levels.
The hourly chart patterns show ETH maintaining stability above key moving averages, with steady buying pressure evident in recent trading sessions. Volume indicators suggest growing market participation as prices push higher.
Trading activity has increased notably across major exchanges, indicating broader market engagement with ETH’s upward movement. This heightened activity often precedes sustained price trends.
Any pullbacks have found reliable support, with buyers stepping in at previously established support zones. This pattern of higher lows supports the overall bullish market structure.
Recent price action shows ETH successfully holding above the $4,000 level despite occasional tests of lower support. The ability to maintain this price point suggests strong buyer conviction at current levels.
The most recent data shows ETH trading at $4,020, with 24-hour trading volume reaching substantial levels across major cryptocurrency exchanges.
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