Ethereum Price Momentum Strong Above $4,000, Targets $4,500 Next

Ethereum‘s price is back above $4,000 driven by strong buying and solid support levels. IntoTheBlock data shows 7.2 million ETH were bought just below $4,000. This shows strong demand from investors. This demand suggests that Ethereum’s price may stay above $4,000.

As $ETH pushes back above $4000, a strong support level is solidifying just below this threshold.

7.2 million ETH were purchased at prices slightly under $4,000, signaling significant demand. This demand should help sustain Ethereum's value above the $4,000 level.

— IntoTheBlock (@intotheblock) December 17, 2024

Additionally, a high-profile move from Justin Sun, who applied to withdraw over 52,000 ETH from Lido Finance, adds further weight to Ethereums current market momentum.

This adds to Ethereums momentum. Sun also bought 392,474 ETH earlier this year. These moves show growing institutional interest and could fuel bullish sentiment.

Justin Sun (@justinsuntron) applied to withdraw 52,905 $ETH (now $209M) from #LidoFinance an hour ago.

This is part of the net 392,474 $ETH he allegedly bought at ~$3,027 ($1.19B) via 3 wallets from Feb-Aug, now having an est. total profit of $349M (+29%).

Note that on Oct 4,…

— Spot On Chain (@spotonchain) December 16, 2024

Ethereum Price Trends and Analysis

Ethereums current price stands at $4,025.5, reflecting a daily gain of 0.92%. The broader trend shows a clear bullish pattern since October, characterized by a series of higher highs and higher lows.

This uptrend has strengthened Ethereums position. Recent price action is consolidating around $4,000. Ethereum is at a turning point. The fight between buyers and sellers will likely decide its next move.

Key Support and Resistance Levels for Ethereum

Ethereums price faces key resistance levels that will likely dictate its short-term direction. The immediate resistance range lies between $4,050 and $4,100, a level that has been tested but not decisively broken.

If Ethereum breaks above this zone, it could move toward $4,200. This price is both a mental barrier and a previous high, making it important to watch. A break above $4,200 could lead to more gains, with $4,500 as a possible target.

On the downside, immediate support is found at $3,800, a level that has previously served as a breakout point. This support should act as a strong defense against any downward moves.

However, if Ethereum fails to hold above $3,800, the next key support level lies at $3,600. This level coincides with the start of Ethereums recent rally in late October and would likely act as a final defense before a deeper pullback.

Technical Indicators and Ethereum Price Momentum

ETH/USD 1-day price chart, Source: Trading view

Ethereums Relative Strength Index (RSI) is currently at 65.16, just below the overbought threshold of 70. This indicates that Ethereum still has room for growth without entering overbought territory.

However, traders should be careful. The RSI is getting close to levels that could signal a slowdown. If the price keeps rising while the RSI falls, a bearish divergence could form, hinting at a possible reversal.

The MACD indicator also shows signs of weakening momentum. The MACD line is currently below the signal line, with a negative histogram indicating a slight decrease in bullish strength.

Traders should watch for a possible crossover of the MACD line back above the signal line. This could boost bullish momentum. But if the divergence continues, Ethereum might see short-term consolidation or a small pullback.

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