During Wednesday’s U.S. trading hours, the crypto market experienced a slight downtick as Bitcoin price reverted from $108k resistance. With bearish momentum accelerating to the altcoin market, the Ethereum price failed to sustain a $4000 breakout. However, the onchain data shows that long-term holders remain unfazed and are steadily increasing their ETH positions.
Currently, the ETH price exchange hands at $3,877 with an intraday loss of 0.42%. According to Coingecko, the asset’s market cap is at $467.2 Billion, while the 24-hour trading volume is at $34.8 Billion.
Key Highlights:
- An active accumulation from Ether’s long-term holds in 2024 signals a high-momentum rally in the coming year.
- The ascending trendline in the 4-hour chart and $3,500 stands as key support for the Ethereum price.
- The formation of a double bottom pattern could delay the $4,000 breakout.
Long-Term Holders Hint at Early ‘Belief Phase’ for ETH
ETH’s long-term holders are showing strong conviction, signaling the potential for a major price rally, as seen in previous bull cycles. On-chain data from Ali Charts reveals that during the past two bull cycles, Ethereum price entered a parabolic rally when long-term holders shifted into greed mode.
Currently, the market appears to be in the early stages of the belief phase, suggesting that the big move for ETH could still lie ahead.
Adding to this optimism, data shared by IntoTheBlock highlights that long-term Ethereum holders have steadily increased their collective balance throughout the year. The figures show that approximately 110 million ETH is now held by these investors, reflecting unwavering confidence and a continued accumulation trend.
Ethereum Price Reversal Looms as Sellers Defend $4K Resistance
The second largest cryptocurrency, Ethereum has been struggling to surpass $4,000 despite the recent high in Bitcoin. In the last two weeks, the 4-hours chart shows two long-wick rejection candles at the overhead trendline, signaling the high selling pressure ahead.
A bearish reversal from $4k could plunge the altcoin 10% down to $3,500, seeking support at the 50-day Exponential moving average. A potential breakdown could further accelerate the selling and drive major correction.
With the broader market so bullish, the Ethereum price would likely hold the $3,500 or renew bullish momentum at the support trendline. A flip above $4,000 could bolster a new All-time-high rally for ETH and parabolic growth.
Also Read: BlackRock Fund Buys First Blockchain-issued Muni bonds
