Ethereum Price Prediction: Will It Reach $5k and Where Will It Come From?
December 10, 2024
If you’ve been keeping an eye on Ethereum’s price action, you may have noticed some volatility recently. Last week, Ethereum Futures took a hit, dropping nearly 16% from its recent highs. This drop was largely influenced by Bitcoin’s movement around the $100,000 mark, leading to over $500 million in long liquidations between Thursday and Friday.
But don’t let this decline fool you—Ethereum’s long-term bullish structure is still going strong. Back in August, Ethereum broke out of a bullish flag and soared above $3,000, hitting a key psychological price point. Just a few days ago, on December 6, Ethereum Futures hit a new all-time high of $4,142.50, surpassing a previous high from March 2024.
Despite some profit-taking following these highs, Ethereum has some key support levels to keep an eye on. The Value Area Low from December 9th sits at $3,559, marking a crucial test for buyers. This level is being watched closely by institutions and algorithms, who may see it as a make-or-break point.
If $3,559 doesn’t hold, the next level to watch is $3,223, which aligns with institutional interest and high-volume trading activity. This could be a prime entry point for longer-term buyers looking to get in at a discount. And if things really take a turn, there’s a Naked Value Area Low from November 15th at $3,070, providing an even better buying opportunity.
For traders looking to navigate these levels, it’s essential to stay on your toes. Keep an eye out for a bounce at $3,559 as confirmation of buyer strength, and consider setting tight stops to manage risk as you enter positions near $3,223. By using these levels strategically, you can plan for potential price movements and position yourself for success.
Looking ahead, Ethereum’s longer-term bullish case is still on track, with a target of $5,000 in sight. Historical VWAP reactions, institutional profit-taking behaviors, and the potential for a double bottom formation all point to a positive outlook for Ethereum.
So, keep an eye on those key support levels at $3,559, $3,223, and $3,070. If Ethereum can hold these levels, we may see it push past $4,000 and eventually reach that $5,000 mark. But remember, trading crypto comes with risks, so always practice proper risk management. Trade smart, stay safe, and let these levels guide your decisions.
