Ethereum (ETH) price: A golden cross formation could push Ethereum above $4,000
TLDR
Ethereum experienced a 46.11% climb but remains the second worst performer among the top 10 cryptocurrencies. A key resistance level at $3,600 could determine ETH reaching $4,000, strong support at $3,000 and $2,359 Ethereum well holdings (1000+ ETH) at monthly highs are available. 5,561, indicating market confidence, short positions are up, $918 million traders react as ETH drops below $3,500, the “golden cross” on the 50/200-day moving average could start a higher run after the August “death cross” dropped 35%.
Ethereum's price movement in November 2024 showed complex market dynamics, with large holders accumulating and short sellers increasing their positions. The second largest cryptocurrency posted a 46.11% gain, although this made it the second worst performer among the top 10 cryptocurrencies by market capitalization.
Recent data shows that Ethereum whales, defined as at least 1,000 ETH addresses, have raised their positions to monthly highs. The current count stands at 5,557 whale addresses, just shy of the monthly peak of 5,561, which indicates a strong confidence among large owners.
As Ethereum failed to maintain a price above $3,500, the market saw a significant increase in short positions, which reached $918 million as traders responded. This contrasts sharply with long positions currently totaling nearly $218 million, leaving a $700 million difference between odds and leverage bets.
Technical analysis shows a critical resistance level at $3,600, which may determine whether ETH can psychologically reach the $4,000 mark. This price point has not been seen since December 2021, and reaching it would represent an 11 percent increase from current levels.
The short-term price action shows Ethereum's trading upside since November 16. However, a recent drop below the channel's support line at $3,314 has raised concerns among market participants.
According to market data, realized profit reached $659.22 million, with many traders profiting from recent price movements. This high yield may provide some protection against massive liquidity unless there is a significant price correction.
Support levels have formed at $3,000 and $2,359, which have created critical price floors that prevent a deep decline if selling pressure intensifies. These steps have shown the historical importance of the places where the previous buyers entered.
The 7-day MVRV measure, which compares market value to intrinsic value, currently stands at 3.8 percent. This reading suggests a neutral and slightly higher short-term outlook, although historical data shows that readings between 5-7% often precede price corrections.
A strong signal is forming on the charts as the 50-day and 200-day moving averages approach the “golden cross” formation. This technical pattern may rekindle buying interest, especially since the August “death cross” that resulted in a 35 percent drop in prices.
Whale behavior patterns show an interesting collection cycle. After rising from 5,527 to 5,561 addresses in six days, the number briefly dropped to 5,535 on November 20, before recovering to its current level within a week.
If Ethereum fails to hold above $3,220, technical analysis suggests that it may drop to $3,033. However, a break above current resistance could pave the way to $3,547 and possibly $4,000.
Derivatives shows that the market is increasing in complexity, if Ethereum moves significantly above $3,700, liquidity risks are increasing for authorized positions. This creates a dynamic environment where large price movements can have adverse effects.
Trading volume patterns indicate constant market participation, although there are significant swings between buys and sells as price tests key technical levels.
Recent market data shows that while short-term traders are taking profits, long-term holders continue to maintain or increase their positions, which creates an interesting dynamic between different time periods.
