Why Ethereum Price May Retest $4,000 Before 2024 Closeout

Ethereum (ETH) price has struggled to regain that level since it fell below $4,000 on December 17, fueling speculation that ETH may not return to the zone before the end of 2024.

However, sentiment may be changing as the 5% price increase in the last 24 hours suggests. For Ethereum to retest the $4,000 mark, several key factors must align. Here's what should happen.

Ethereum holders are poised to break the barrier.

According to the In/Out of Money Around Price (IOMAP), Ethereum price holds strong support at $3,352. At this time, 3.34 million Ethereum addresses hold 3.18 million coins and are profitable.

IOMAP assigns addresses based on unearned gains, losses, or breakpoints. The larger the volume or addresses within the stock's range, the stronger the support or resistance. Therefore, a high amount in the currency indicates strong resistance, while a high amount in the currency indicates strong support.

As you can see below, the main resistance for the price of Ethereum to pass is at $3,508. Here, 3.90 million Ethereum addresses bought 1.62 million ETH. Therefore, if the buying pressure increases, the price of the cryptocurrency may cross this barrier and sell towards $4,000.

Another indicator that supports bullish bias is coin holding time. As the name suggests, a coin's hold period is measured by the amount of time a cryptocurrency has been traded or untraded.

The higher the holding period, the more owners refrain from selling. Also, when the holding period decreases, it indicates that investors are selling.

Based on IntoTheBlock data, Ethereum's latency has increased by 332% in the past seven days. If this trend continues, the Ethereum bullish thesis mentioned above may be confirmed.

ETH Price Prediction: High Values ​​Soon?

From a technical point of view, ETH has risen above the Ichimoku cloud. Ichimoku Cloud is an indicator that indicates support and resistance. When the cloud is above the price, it indicates resistance.

But when the price is above the cloud, it indicates support, which can increase the price. Therefore, for ETH, the price of the cryptocurrency may rise to $4,109. If bulls hold the line above $4,000, the price could rise to $4,500.

However, if the Bears take over, this may not be the case. In this case, the price of Ethereum may drop to $3,111. If selling pressure intensifies, the price may drop below $3,000.