Originally published on: December 18, 2024
Ethereum (ETH) has experienced a significant drop, plummeting 6.35% from its recent high of $4,109 in just one day. The altcoin formed a bearish engulfing pattern on the daily chart, signaling a potential trend reversal.
This marks the third time ETH has been rejected at the $4,000 mark in 2024, highlighting strong resistance at this level. Despite numerous attempts to break above $4,000 since 2021, Ethereum has been unable to sustain a bullish breakout.
Recent data suggests a shift in sentiment among futures traders, with a growing number of short positions compared to long positions. The ETH long/short ratio dropped to 0.9 between December 16 and 17, indicating a bearish outlook among traders.
Despite the bearish sentiment, Ethereum’s market structure remains intact, showing higher highs and higher lows. Technical analysis suggests that ETH could retest the $3,715 to $3,628 range, where a fair value gap and support from the 200-day EMA are located.
However, the market remains volatile, with significant concentrations of leveraged positions on both the long and short sides. This could lead to choppy price action in the near term.
While the future of Ethereum’s price remains uncertain, it’s essential for investors to conduct their own research and make informed decisions. Stay tuned for more updates on the crypto market and investment opportunities.
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