Ethereum (ETH) Price: Golden Cross Formation May Propel ETH Over $4,000
Ethereum has been on quite the rollercoaster ride this November, with its price seeing a 46.11% increase. However, despite this growth, Ethereum is currently the second-worst performer among the top 10 cryptocurrencies.
One interesting trend to note is the behavior of Ethereum whales, which are large holders with at least 1,000 ETH. These big players have been accumulating their positions, with the current count of whale addresses at 5,557, very close to the monthly high of 5,561. This suggests that these large holders are feeling pretty confident about the market.
On the flip side, there has been a significant uptick in short positions, totaling $918 million. This surge in short selling comes as Ethereum struggles to hold prices above $3,500. Long positions, on the other hand, amount to around $218 million, creating a large discrepancy of $700 million between bearish and bullish bets in the market.
Looking at the technical analysis, there is a crucial resistance level at $3,600 that will play a significant role in determining whether Ethereum can push past the $4,000 mark. Reaching this price point would mark an 11% increase from current levels and hasn’t been seen since December 2021.
Recent market movements have shown Ethereum trading within an ascending channel since mid-November. However, a recent drop below the channel’s support line at $3,314 has sparked concerns among investors.
Interestingly, the market data reveals that realized profits have reached $659.22 million, indicating that many traders have locked in gains during recent price fluctuations. This level of realized profits could provide some buffer against widespread liquidations unless there is a sharp price rebound.
Key support levels have formed at $3,000 and $2,359, serving as important price floors that could prevent further declines if selling pressure ramps up. These levels have historically been areas where buyers have stepped in to support the price.
The charts are also showing a potentially bullish signal with the 50-day and 200-day moving averages inching closer to a “Golden Cross” formation. This technical pattern could spark renewed buying interest, especially considering that the previous “Death Cross” in August led to a 35% price drop.
In summary, Ethereum is experiencing a complex market dynamic with a mix of large holders accumulating and short sellers increasing their positions. The next few weeks will be critical in determining whether Ethereum can break through key resistance levels and continue its upward trajectory.
