When will Ethereum Price Correct Again? There is a Bearish Signal

Bittime - When will the Ethereum price correct again? There is a bearish signal in the current ETH price indicating a possible decline towards $3,500 (around IDR 56 million). Read the complete analysis.

Ethereum (ETH) continues to be in the spotlight in the crypto market. In the last few weeks, the price of ETH has experienced a significant spike, breaking through $4,100 (around Rp. 65,600,000), which is the highest level since March 2024. 

However, after reaching that point, ETH faced considerable selling pressure, causing a fairly sharp price drop. Now, many are wondering: Will the ETH price experience a further correction? And if so, to what extent could the decline occur? Here's the review.

Significant ETH Price Drop?

In the last few weeks, ETH showed a price surge of more than 15%. This coin managed to touch $4,100 (around Rp. 65,600,000) for the first time since March 2024. 

However, after reaching this level, ETH experienced considerable selling pressure, leading to a significant price drop. Ethereum price history shows that whenever the price reaches the $4,100 mark, ETH often faces a sharp decline.

Data from CryptoQuant shows an increase in ETH reserves on exchanges of close to 100,000 ETH, which is equivalent to around $400 million (around IDR 6.4 trillion). 

This increase in reserves indicates the potential for greater selling pressure, especially when prices are getting closer to their highest level in the last six months.

In addition, unstaking activity (withdrawing ETH from staking) has also increased. This indicates that whales or large ETH holders are starting to profit from the recent price increase, which could add to the potential for a price decline. 

One clear example is Justin Sun, founder of Tron, who on December 16, 2024, withdrew 52,905 ETH (around $209 million or IDR 3.34 trillion) from the Lido Finance staking protocol.

Read also: Is $RLUSD a Threat to XRP?

ETH Technical Analysis 

From a technical analysis perspective, ETH appears to be forming a bearish double-top price pattern around the strong resistance level of $4,100. The double-top pattern usually indicates that the uptrend has reached its saturation point and the price has the potential to move down after failing to break through the resistance level.

In addition, the ETH Relative Strength Index (RSI) indicator is showing a decline, which indicates a bearish divergence. This decline in RSI further strengthens the signal that ETH could experience further correction. 

Some analysts predict that the price of ETH could fall by around 12% to reach the $3,500 level (around IDR 56 million), which is the next potential target in the short term.

Read also: How to Buy Crypto with Apple Pay and Google Pay

Current ETH Price

At the time of writing, the price of ETH was trading at around $3,947 (around Rp. 63.59 million), experiencing a decline of 0.80% in the last 24 hours. Despite the slight decline, ETH trading volume increased by 60%. 

This shows there is high interest from crypto investors to buy at lower prices after the previous price spike.

Further investigation shows that despite the recent price decline, some analysts remain optimistic about Ethereum's future potential. 

One of the most optimistic predictions comes from popular trader CoinMamba, who predicts ETH could reach a new high price (ATH) of $5,000 (around IDR 80 million) before the end of 2024.

However, not all predictions are optimistic. Another trader, Skew, warned that if ETH fails to maintain the resistance level of $3,750 (around Rp. 60 million), the price could experience a further decline, even breaking through the $3,500 level (around Rp. 56 million), which could be a critical point for ETH.

Read also: What is a Phantom Wallet Airdrop?

On-Chain Indicators to Pay Attention to

Several on-chain indicators also provide an idea of ​​the direction of ETH price movement. One of them is the increase in the number of daily active addresses on Ethereum, which has jumped almost 7% in the last 24 hours, surpassing the 600,000 active address mark. 

This increase shows that usage of the Ethereum blockchain is increasing, which could be a driving factor for the ETH price spike.

Apart from that, the Net Network Growth indicator which shows the growth momentum of the Ethereum network also experienced an increase of 0.30% per day, entering the bullish zone. 

Despite these positive indications, the "In the Money" indicator which measures changes in the number of ETH investors who are recording profits has decreased slightly, although around 89% of ETH investors are still in the profit zone.

FAQs About Ethereum

Will Ethereum Hit $5,000?

One analyst now says that the skies are clear for a new all-time high. “The cogs and bolts are ready,” Iliya Kalchev, an analyst at Nexo, told DL News. “Ethereum could soar past $5,000 as early as 2025.”

Can I Buy $1 Worth of Ethereum?

Think you have to buy all the coins to get started? With bitFlyer, you can invest in Ethereum and other popular cryptocurrencies for as little as $1.

Can Ethereum Reach $100,000?

Ethereum could reach $100,000 after 2030 only if broad market conditions remain favorable.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Also, visit the Bittime Blog for interesting updates and educational information about the crypto world. Find reliable articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your crypto knowledge.

Reference 

Binance Square, Ethereum (ETH) Bearish Signal, $3,500 the Next Target?, accessed December 17, 2024.

CryptoPotato, Top Ethereum (ETH) Price Predictions: New ATH or Another Severe Correction?, accessed December 17, 2024.

Author: Y