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Ethereum May Retest $3,700 Before a Major Rally, Analyst Predicts

Ethereum relatively sluggish price performance compared to Bitcoin’s continuous rise appears to have captured the attention of crypto analysts. While Bitcoin has created a new peak above $106,000 earlier today, Ethereum’s price still sits below $4,000 with a current trading price of $3,943, marking a modest 1.4% increase over the past 24 hours. However, despite this slow pace, some analysts see signs of strength and potential growth for Ethereum in the near term. Related Reading: Ethereum Battles Bearish Retail Sentiment Amid Surging ETF Demand Retest Before The Major Rally One notable analyst, CryptoBullet, shared his insights on X, drawing comparisons between the current market environment and Ethereum’s January 2021 rally. “Second consecutive weekly candle closed above the resistance,” the analyst observed. “The shape of the candle and overall environment reminds me of January 2021. We might wick to $3,700 this week, but it will be bought back up quickly. Don’t ignore this ETH strength.” CryptoBulllet further emphasized that Ethereum’s ability to hold its position above key resistance levels is a strong indicator of bullish momentum, suggesting that a significant price movement could be on the horizon. $ETH 1W update Second consecutive weekly candle closed above the Resistance ???????? The shape of the candle and overall environment reminds me of January 2021 We might wick to $3700 this week but it will be bought back up quickly ???? Don’t ignore this #ETH strength! https://t.co/rIamWMSAb6 pic.twitter.com/29bs5aTUd3 — CryptoBullet (@CryptoBullet1) December 16, 2024 Titan of Crypto, another renowned analyst in the community echoed this optimism, noting Ethereum’s highest weekly candle close since 2021 as a major milestone. “Ethereum New ATH Incoming. ETH just achieved its highest weekly candle close since 2021, a major milestone,” he wrote. “A successful retest could propel it to its previous ATH and beyond.” These observations indicate growing confidence among market participants that Ethereum could soon reclaim its all-time high of $4,878, last achieved in November 2021. Ethereum Traders Faces Liquidation Despite these bullish projections, Ethereum’s recent price action has not been favorable for all market participants. According to data from Coinglass, 123,021 traders were liquidated over the past 24 hours, resulting in a total of $396.41 million in liquidations across the crypto market. Ethereum accounted for approximately $53.12 million of these liquidations, with long positions taking the larger hit at $28.4 million, while short positions saw liquidations worth $24.69 million. Notably, liquidation occurs when a trader’s position is forcibly closed by an exchange due to insufficient funds to cover losses. In the case of Ethereum, the higher volume of liquidations, particularly among long positions, reflects a level of over-leverage among traders betting on the asset’s upward momentum. Featured image created with DALL-E, Chart from TrangView

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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

ISLAND: Everything You Need to Know About the ‘Nifty Island’ Ethereum Token and Airdrop

Ethereum gaming platform Nifty Island is launching its ISLAND token. Here’s what you need to know about the airdrop, tokenomics, and more. NewsBTC

Bitcoin Crushes Gold Ceiling: 1 BTC Equals 39 Ounces—More to Come?

Launched in 2009, Bitcoin has massively surged as the flagship cryptocurrency recently hit an all-time high of $106,533. Since the U.S. presidential election, the value of the cryptocurrency has increased by at least 50 percent. However, the price is currently consolidating at $104,672 – 2.6% higher on Monday. At this price, 1 Bitcoin is equal to 39 ounces of gold. U.S. Strategic BTC Reserve Talk Fuels Rally Further, there is speculation that the Trump administration is making a Bitcoin strategic reserve. This initiative would be modeled after the US Strategic Petroleum Reserve. President-elect Donald Trump discussed this during a recent public address. The U.S government already owns 200,000 BTC, which is worth over $20 billion. Trump’s administration also intends to apply crypto-friendly measures. Former PayPal executive David Sacks has been hired as a cryptocurrency advisor. Trump is also likely to nominate Paul Atkins, an attorney with a pro-crypto record, for the position of the SEC chair. Other nations have also shown interest in holding Bitcoin reserves . China, the UK, Bhutan, and El Salvador have invested in Bitcoin for national strategies. Japan legislators are pushing for a strategic Bitcoin reserve. Meanwhile, Russia is exploring Bitcoin as an alternative to the U.S. dollar. President Vladimir Putin has criticized the dollar’s dominance in global trade. Jerome Powell, Chairman of the Federal Reserve, remains skeptical. He recently compared Bitcoin to gold, calling it speculative. The inclusion of MicroStrategy in the Nasdaq-100 Index has drawn attention as MicroStrategy holds significant Bitcoin reserves . Its shares have surged sixfold this year, reaching a market value of $94 billion. The company’s inclusion in the index could attract more institutional investors. Peter Brandt Bitcoin Analysis and Prediction Veteran trader Peter Brandt’s recent analysis on December 16th shows Bitcoin has broken a new all-time high in the Bitcoin/Gold ratio. The ratio is now at an all-time high, with Brandt predicting it could soon reach 89:1, meaning it will take 89 ounces of gold to buy one Bitcoin. Chart shared by Peter Brandt showing BTC Vs Gold analysis Both Brandt’s charts show a clear bullish breakout, with Bitcoin maintaining strong upward momentum. The other chart highlights Bitcoin’s recent price action, suggesting a possible target of around $120,000, with further upside potential. Chart shared by Peter Brand showing BTC/USDT analysis and next target The chart shows Bitcoin’s longer-term movement, reinforcing the strength of this rally, with Bitcoin steadily rising after breaking past resistance levels. Bitcoin’s year-to-date growth now stands at 192%. The total cryptocurrency market is valued at $3.8 trillion. NewsBTC