Ethereum ETH Price Begins to Explode: On-chain Data Hints at 2024 Supply Shock
Ethereum bounced back from recent bearish sentiment with a vengeance, showing significant strength as it approaches critical resistance levels. This bearish rebound is a massive on-chain combination of signals that Ethereum could be on the way to a major resistance rally next year.
Main points
The price of Ethereum has rebounded strongly and is heading towards a key resistance level. A 5-year low of 9.3 million indicates that retailers are hoarding and whales are losing selling power. Analyst Michael van de Pop predicts that Ethereum could hit $3,000 in Q1 2024.
After being in the crypto market slump for most of 2022, Ethereum was one of the standout performers in December. Despite the wide volatility of the property market, the price increased by 40% in one month. This resilience is supported by growing data that retail traders are hoarding ETH heavily, while whales are losing their ability to sell.
Blockchain analytics firm Santiment reports that the number of immutable addresses holding Ethereum has risen to 54.6 million. At the same time, ETH balances on the central exchange fell to a 5-year low. This shows that daily traders are hoarding Ethereum in anticipation of higher prices, while the biggest wallet holders are losing their influence.
???? #Ethereum hit its highest level since June 2022 at $2,349. Long-term major WELL wallets are getting more prosperous and high-trade WELL wallets have less selling power, a promising combination for a continued breakout. pic.twitter.com/82plXmVn02
— Santiment (@santimentfeed) December 7, 2023
The technical chart looks promising for Ethereum as it faces formidable resistance around the $1,800 level. Well-watched analyst Michael Van de Pop tweeted that this wall would break in early 2024, with Ethereum reaching $3,000 in Q1 next year if the crash pace continues.
#Ethereum starts rallying against $BTC.
The best time to invest in altcoins is in the period before #Bitcoin declines, 3-8 months.
Now, we may be seeing the same thing with $ETH, meaning Ethereum is poised for $3,000+ in Q1. pic.twitter.com/9HPzTeIK6A
— Michael Van de Pop (@CryptoMichNL) December 7, 2023
Other experts point to Ethereum's history of slow and steady growth as evidence of a pending supply shock eventually resulting in upward moves. And compared to the chaos that plagued major centralized crypto institutions in 2022, positive sentiment continues to swell around ETH.
Of course, nothing is guaranteed in the ever-changing cryptocurrency markets. However, Ethereum has fundamental advantages as a leading smart contract platform and clear technical and on-chain tokens that indicate significant growth. The stars could align for Ethereum to a new all-time high by 2023 early next year.
