Ethereum Hits $4,000: Technical Analysis for December 11, 2024

Ethereum reached $4,000 resistance before initiating a sell-off. Here's the future outlook for ETH.

In November, Ethereum has increased by over 47%. After bouncing off the $2,400 support level, it climbed past the $3,560 resistance. Following a brief period of stabilization around $3,500, ETH continued to rise, hitting a peak of $4,000. The positive trend predicted in the analysis from November 20 became reality. However, a general downturn in the crypto market led Ethereum to pull back, highlighting the significance of this support level.

Currently, Ethereum is trading around $3,700, indicating a slight rebound in interest. The overall trend for Ethereum appears bullish in the short, medium, and long term. This is supported by ETH trading above its yearly VWAP and both the 50-day and 200-day moving averages, which are trending upward. While Ethereum’s upward momentum has quickened, recent price changes suggest a slight weakening of this trend.

The current technical evaluation was created with insights from Elie FT, an engaged investor and trader in the cryptocurrency sector, and now a trainer at Family Trading, a community of independent traders active since 2017. They provide live sessions, educational resources, and support within a professional environment.

The open interest in ETH/USDT perpetual contracts has shifted with Ethereum's price, showing a lack of new investment and a notable closing of speculative positions. The cumulative volume delta is also declining, indicating selling interest on the latest market orders. Although there are more long positions than short ones, the funding rate is starting to slow down. Recently, there were significant liquidations of long positions, indicating a capitulation by buyers.

The ETH/USDT heatmap reveals that Ethereum has entered a key sell-off zone just below $4,000. The cryptocurrency has dropped nearly 15% since encountering this resistance. Significant sell-off areas are present above and below its current price, with potential resistance around $4,150 and support between $3,500 and $3,200. The $3,000 level is also critical as a support area. As the price nears these levels, it may trigger large orders, raising the risk of increased volatility for Ethereum. These zones are vital for investors to monitor.

If Ethereum maintains its position above $3,500, it could continue to rise, targeting a recovery near $4,100 to $4,200. A crucial resistance level to watch is around $4,650. If the bullish trend persists, reaching $5,000 is possible, marking a 33% increase. If Ethereum cannot stay above $3,500, a drop to $3,250 may occur. The next key support level would then be about $3,000, followed by the $2,400 mark.

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