Ethereum Struggles with $4K Resistance Despite Unfazed

The
cryptocurrency
market
saw
a
slight
slump
on
Wednesday
as
the
price
of
Bitcoin
recoiled
from
a
$108k
resistance
level,
a
bearish
momentum
that
also
affected
the
altcoin
market
with
Ethereum
failing
to
maintain
its
breakout
above
$4000.
This
notwithstanding,
onchain
data
analysis
indicates
that
long-term
holders
remain
unfazed
by
the
price
volatility,
with
an
observed
increase
in
their
Ethereum
positions.

At
the
moment,
Ethereum
is
trading
at
around
$3,877,
marking
a
minor
intraday
loss
of
0.42%.
Based
on
data
from
Coingecko,
Ethereum’s
market
cap
stands
at
$467.2
billion,
with
a
24-hour
trading
volume
of
$34.8
billion.

Key
market
indicators
to
watch
include
the
active
accumulation
of
Ethereum
by
long-term
holders,
signaling
a
potential
high-momentum
rally
in
the
coming
year.
Additionally,
an
ascending
trendline
in
the
4-hour
chart
and
$3,500
serves
as
key
support
for
the
Ethereum
price.
However,
the
formation
of
a
double
bottom
pattern
may
delay
the
much-anticipated
$4,000
breakout.

Long-term
Ethereum
holders
are
demonstrating
solid
conviction,
an
indication
of
a
potential
price
rally
as
observed
in
past
bull
cycles.
On-chain
data
from
Ali
Charts
shows
that
in
previous
bull
cycles,
Ethereum
experienced
a
parabolic
price
rally
when
long-term
holders
shifted
into
a
greed
mode.

The
current
market
sentiment
appears
to
be
in
the
early
stages
of
the
belief
phase,
suggesting
that
Ethereum’s
significant
price
movement
could
still
be
on
the
horizon.

Further
underlining
this
optimism,
IntoTheBlock
data
reveals
that
long-term
Ethereum
holders
have
been
consistently
increasing
their
collective
balance
throughout
the
year.
Approximately
110
million
ETH
is
currently
held
by
these
investors,
indicating
unwavering
confidence
and
a
continued
accumulation
trend.

Despite
Ethereum’s
struggle
to
surpass
the
$4,000
mark
in
the
face
of
Bitcoin’s
recent
high,
the
4-hour
chart
reveals
two
long-wick
rejection
candles
at
the
overhead
trendline
in
the
past
two
weeks,
signaling
significant
selling
pressure.

A
bearish
reversal
from
$4k
could
see
the
altcoin’s
price
fall
by
10%,
down
to
$3,500,
where
it
could
find
support
at
the
50-day
Exponential
Moving
Average.
A
potential
breakdown
could
accelerate
selling
pressure,
leading
to
a
significant
correction.

However,
given
the
bullish
sentiment
in
the
broader
market,
the
Ethereum
price
is
likely
to
hold
the
$3,500
mark
or
regain
bullish
momentum
at
the
support
trendline.
A
flip
above
$4,000
could
trigger
a
fresh
all-time-high
rally
for
Ethereum,
potentially
leading
to
parabolic
growth.