Ethereum ETH Price Primed to Erupt: On-Chain Data Hints at 2024 Supply Shock
Ethereum has powered back from recent bearish sentiment with a vengeance, displaying formidable strength as it approaches pivotal resistance levels. This steep rebound combined with extremely bullish on-chain activity signals Ethereum may be on the cusp of a major breakout rally over the next year.
Keypoints
- Ethereum price has rebounded strongly and is heading towards a key resistance level
- Token shows extreme strength which points to a positive long-term outlook, potentially reaching a new all-time high soon
- Non-exchange Ethereum addresses have hit an all-time high of 54.6 million compared to 150 biggest exchange addresses at 5-year low of 9.3 million
- This suggests retail traders are accumulating and whales are losing sell-off power
- Analyst Michael van de Poppe predicts Ethereum could hit $3,000 in Q1 2024
After a crushing crypto market downturn for most of 2022, Ethereum has been one of the standout performers in December. Its price has soared around 40% in a month, bouncing firmly off support despite broader asset market volatility. This resilience is underpinned by growing data that retail traders are fervently accumulating ETH while whales lose their sell-off capabilities.
Blockchain analytics firm Santiment reports non-exchange addresses holding Ethereum have exploded to an all-time high of 54.6 million. At the same time, balances of ETH on centralized exchanges have plummeted to a 5-year low. This suggests everyday traders are stockpiling Ethereum in anticipation of higher prices while the largest wallet holders see their influence wane.
???? #Ethereum has scratched its way to $2,349, its highest level since June, 2022. The long-term trend of top non-exchange whale wallets getting richer, and top exchange whale wallets having less sell-off power, is a promising combo for a continued climb. https://t.co/h7ogbqPLWf pic.twitter.com/82plXmVn02
— Santiment (@santimentfeed) December 7, 2023
The technical chart also looks promising for Ethereum as it presses against formidable resistance around the $1,800 level. Well-followed analyst Michael van de Poppe expects this wall to crumble in early 2024, tweeting that Ethereum reaching $3,000 is a realistic possibility in Q1 next year if bullish momentum persists.
#Ethereum starts to rally against $BTC.
In the period prior to the #Bitcoin halving, 3-8 months before, it’s the best period to allocate towards altcoins.
Right now, we might be seeing the exact same on $ETH, which means that Ethereum is ready for $3,000+ in Q1. pic.twitter.com/9HPzTeIK6A
— Michaël van de Poppe (@CryptoMichNL) December 7, 2023
Other experts highlight Ethereum’s history of slow, steady growth eventually resulting in parabolic upside moves as justification for a pending supply shock. And positive sentiment continues swelling around ETH in comparison to the turmoil embroiling major centralized crypto institutions in 2022.
Of course, nothing is guaranteed in the volatile world of cryptocurrency markets. However, Ethereum possesses fundamental advantages as the leading smart contract platform and clear technical and on-chain signals hinting at substantial upside. The stars may be aligning for Ethereum to power higher through 2023 into a fresh all-time high by early next year.
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