Ethereum Price: Can ETH Finally Break $4K Resistance?
Ethereum Price– Ether’s (ETH) price has risen by 5.7% over the past week, putting more than 90% of ETH holders in profit. However, despite the positive price movement, many traders remain skeptical about Ether’s ability to break the $4,000 barrier, as short positions continue to pile up in anticipation of a potential price pullback.
Short Positions Pile Up as ETH Approaches $4,000 Resistance
According to CoinGlass data, if Ether reaches the $4,000 mark, as much as $1.43 billion in short positions could be liquidated. This could lead to significant market movement, but the question remains: will ETH be able to sustain a rally beyond this critical price level?
Recent data from IntoTheBlock revealed that 90.8% of ETH holders are currently in profit, the highest percentage seen since June. However, 9.2% of holders still at a loss are holding only 2.8% of the total supply, which suggests that the potential sell-off from this group may not have a significant impact on the market.
Ethereum’s Price Stuck Below $4,000 Since March
Ether’s last attempt to break the $4,000 level occurred on March 12, when it briefly surged past that price point. Since then, ETH has been trading within a narrow range between $2,223 and $4,066. Despite the launch of spot Ether ETFs on July 23, which many had hoped would trigger a price surge similar to Bitcoin’s post-ETF rally in January, Ethereum has not broken free from this range.
Funding Rates Indicate Potential Upside for Ether
Despite the uncertainty around Ether’s ability to break $4,000, some traders remain optimistic. According to a November 28 market report from CryptoQuant contributor ShayanBTC, Ether’s funding rates have seen a “significant uptick” in recent weeks. This suggests growing interest in ETH, but funding rates are still below the levels seen during Ethereum’s previous all-time high of $4,900.
At the time of publication, Binance’s funding rate for Ether was 0.0162%, indicating that the market may not yet be in an “overheated” state, and there may still be room for upside movement.
Optimistic Traders Eye $4,000 and Beyond
Despite the resistance at $4,000, there are traders who remain bullish on Ether’s future. Ash Crypto, a pseudonymous trader with 1.3 million followers on X (formerly Twitter), stated on November 28 that Ether is “very close” to reaching the $4,000 mark.
Other traders, such as Borovik, have even more ambitious price targets. In a post from November 23, Borovik claimed, “If Ethereum hits $15,000 this cycle, I’ll get my first ever tattoo. The ETH logo.”
Crypto analyst Lark Davis, who has been consistently highlighting Ethereum’s long-term potential, has been emphasizing a $15,000 target for Ether to his 1.2 million followers since July.
The Road Ahead for Ethereum
While many traders are bullish on Ether’s long-term prospects, including predictions of a $15,000 price target, the short-term outlook remains uncertain. Ether continues to face significant resistance at $4,000, and the market’s reaction to any price moves above that level will likely dictate the next phase of the cryptocurrency’s price action.
As the market continues to evolve, traders will be keeping a close eye on both short-term funding rates and long-term price targets as potential indicators of Ether’s future performance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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