Ethereum Price Prediction: $4,000 and Beyond Possible in December
Ethereum Price Surge – Ethereum’s (ETH) price has surged by 33% over the last 30 days, sparking speculation that the cryptocurrency could hit new all-time highs. While a new peak seems unlikely as the month concludes, analysts are eyeing Ethereum’s December price prediction with hopes for continued gains for holders.
Analyst Insights on Ethereum’s December Potential
According to Juan Pellicer, Senior Researcher at IntoTheBlock, Ethereum’s price may see a new all-time high in December, but only if ETH can break the critical $4,000 resistance level. Pellicer emphasized that Ethereum’s potential rally could closely follow Bitcoin’s performance, with large holders and retail participation playing key roles in driving further price increases.
Pellicer explained, “The outlook for Ethereum mirrors Bitcoin’s positive trajectory, with significant potential for an end-of-year rally. If ETH breaks through the previous $4,000 ATH, momentum could accelerate. Our on-chain analysis is looking at trends in accumulation by large holders, which would indicate spot buys from both institutional and retail investors.”
However, Pellicer noted that as of now, large holders’ netflow has decreased, signaling that whales may not be accumulating ETH as aggressively as before. If this trend continues, it could make it more difficult for Ethereum to reach the $4,000 mark in December.
Funding Rates and Market Sentiment
Brian Quinlivan, Lead Analyst at Santiment, highlights the importance of Ethereum’s funding rate on exchanges like BitMex and Binance. The funding rate indicates whether longs (buyers) or shorts (sellers) dominate the market. Currently, the funding rates on both exchanges are highly positive, suggesting that most traders expect ETH’s price to continue rising in December.
Quinlivan, however, pointed out that the funding rate needs to remain relatively neutral for Ethereum’s price to sustain its momentum and potentially catch up to Bitcoin’s growth. “A significant climb would need to overcome many odds, and historically, we need funding rates to lean toward shorting for major price increases,” Quinlivan stated.
MVRV Ratio: Ethereum Approaches Undervalued Territory
Julio Moreno, Head of Research at CryptoQuant, suggests that ETH is approaching an undervalued state relative to Bitcoin, using the Market Value to Realized Value (MVRV) ratio. According to Moreno, ETH’s current valuation compared to Bitcoin is nearing extreme undervalued territory, similar to conditions seen in February 2020 before its subsequent rise to an all-time high in 2021.
Ethereum’s Technical Outlook: Bull Flag Formation
Technically, Ethereum has formed a bull flag pattern on the daily chart. This formation typically signals an impending breakout. After a sharp rise (the “flagpole”), the price enters a consolidation phase (the “flag”), and as it breaks out of this consolidation, a significant upward movement often follows. While ETH has faced resistance around $3,600, analysts expect the price to bounce back, with $4,000 potentially in reach by the end of December.
Ethereum Price Prediction: $4,000 or Higher?
While Ethereum has shown bullish signs, any selling pressure could reverse the trend, pushing the price back toward $3,003. However, if Ethereum manages to maintain momentum and overcome resistance, $4,000 and beyond could be within reach as December unfolds.
Disclaimer: This website’s content is for informational purposes only and does not constitute financial advice, with all cryptocurrency purchases carrying inherent risks.
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