Can he maintain the momentum?

Ethereum reached $3,688 on November 28, the highest in six months. That's big news, but it didn't last long. The market took a breather, and ETH slipped to $3,580. It's still up 5% for the week, which isn't too shabby, considering its wild 18% jump earlier. The real question? Is Ethereum Gearing Up For More Activity – Or Is This Another Tease?

Shocking feeling, but is it enough?

There is definitely some happy brewing. In the futures market, the amount of money shows that many traders are betting on ETH, which is a good sign. But let's not get ahead of ourselves. This optimism is nowhere near what we saw at the 2021 high of $4,890.

Most ETH owners are pretty happy right now. About 88 percent of them are profitable at current prices. That's not bad, right? Another 4% are also breaking even, while only 8% are down. On-chain data shows that many investors bought ETH between $3,489 and $3,707. For them, this is a sweet spot. But who jumped over $3,707? They are still waiting for the market.

Cooling-or heating?

Here's where it gets tricky. Although the price of ETH is increasing, the RSI (Relative Strength Index) is decreasing. It's a fancy way of saying that momentum is losing steam. If prices fall further, ETH may head towards $3,046, which is the next major support level.

Another thing to pay attention to is the transaction volume. It has fallen by a whopping 34.90% in the last 24 hours. That's a red flag because it means a lot of people are buying and selling. Even whales (big money investors) don't seem sure. The data shows that they are evenly split between longs and shorts, so the market is likely to hold up for the time being.

Also read: XRP Price Is Set For A Big Pre-Christmas Rally – Here's Why;

What's next for Ethereum?

It's a mixed bag, honestly. On the one hand, there is a lot of optimism among investors, and most of them are sitting on profits. But on the other hand, technical signals like RSI and trade volume say, “Wait, something's off!” They shout.

So, will Ethereum pass $3,688 and hit a new high? Or are we looking at a cooling off period – or even a correction? No one knows for sure, but one thing is for sure: it will be fun to watch.