Ethereum May Retest $3,700 Before a Major Rally, Analyst Predicts
Ethereum relatively sluggish price performance compared to Bitcoin’s continuous rise appears to have captured the attention of crypto analysts.
While Bitcoin has created a new peak above $106,000 earlier today, Ethereum’s price still sits below $4,000 with a current trading price of $3,943, marking a modest 1.4% increase over the past 24 hours.
However, despite this slow pace, some analysts see signs of strength and potential growth for Ethereum in the near term.
Retest Before The Major Rally
One notable analyst, CryptoBullet, shared his insights on X, drawing comparisons between the current market environment and Ethereum’s January 2021 rally.
“Second consecutive weekly candle closed above the resistance,” the analyst observed. “The shape of the candle and overall environment reminds me of January 2021. We might wick to $3,700 this week, but it will be bought back up quickly. Don’t ignore this ETH strength.”
CryptoBulllet further emphasized that Ethereum’s ability to hold its position above key resistance levels is a strong indicator of bullish momentum, suggesting that a significant price movement could be on the horizon.
$ETH 1W update
Second consecutive weekly candle closed above the Resistance
The shape of the candle and overall environment reminds me of January 2021
We might wick to $3700 this week but it will be bought back up quickly
Don’t ignore this #ETH strength! https://t.co/rIamWMSAb6 pic.twitter.com/29bs5aTUd3
— CryptoBullet (@CryptoBullet1) December 16, 2024
Titan of Crypto, another renowned analyst in the community echoed this optimism, noting Ethereum’s highest weekly candle close since 2021 as a major milestone.
“Ethereum New ATH Incoming. ETH just achieved its highest weekly candle close since 2021, a major milestone,” he wrote. “A successful retest could propel it to its previous ATH and beyond.”
These observations indicate growing confidence among market participants that Ethereum could soon reclaim its all-time high of $4,878, last achieved in November 2021.
Ethereum Traders Faces Liquidation
Despite these bullish projections, Ethereum’s recent price action has not been favorable for all market participants. According to data from Coinglass, 123,021 traders were liquidated over the past 24 hours, resulting in a total of $396.41 million in liquidations across the crypto market.
Ethereum accounted for approximately $53.12 million of these liquidations, with long positions taking the larger hit at $28.4 million, while short positions saw liquidations worth $24.69 million.
Notably, liquidation occurs when a trader’s position is forcibly closed by an exchange due to insufficient funds to cover losses. In the case of Ethereum, the higher volume of liquidations, particularly among long positions, reflects a level of over-leverage among traders betting on the asset’s upward momentum.
Featured image created with DALL-E, Chart from TrangView