Ethereum price could potentially retest the $4,000 level this month, supported by its strong ecosystem and solid on-chain fundamentals.
Ethereum price is currently the subject of attention, as the digital currency ecosystem is undergoing a recovery.
The combined crypto market valuation has increased by a marginal 0.22% to $3.3 trillion in the last 24 hours.
The likelihood of the Ethereum price maintaining its upward trajectory and regaining the $4,000 threshold is a matter of speculation, as it is the second-largest cryptocurrency.
Ethereum Price: Result of Changing Metrics
Ethereum has increased by 2.2% in the past 24 hours to $3,267.90, according to the most recent market data.
The coin fluctuated between a low of $3,219.69 and a high of $3,319.69 during this time.
Some fundamental Ethereum metrics, such as the trading volume, are presently declining, despite this increase.
The current liquidity of the ecosystem is determined by this metric, which has decreased by 57.57% to $13.25 billion.
The Ethereum price responded in opposition to the monster transaction figures, in addition to the volume.
Whales have transferred a mere 1.96 million ETH, which is valued at $6.37 billion, overnight, according to data from IntoTheBlock.
For purposes of comparison, Dogecoin, which has a lower market capitalization, has a record of $23.35 billion in whale transactions during the same time frame.
Although an earlier analysis of the price of ETH suggested that it was possible to reclaim a new all-time high (ATH), these adverse onchain metrics indicate that there are other possibilities.
ETH Price Potential To Reach $4,000
After falling from this level on December 17, Ethereum has made numerous unsuccessful attempts to reclaim the $4,000 resistance level.
The volatility of the ETH/USDT 4H Chart is decreasing. Its Relative Strength Index (RSI) plummeted to 42 during the recent selloff, nearly reaching the oversold level.
The Moving Average Convergence Divergence indicator (MACD) line has recently crossed above the signal line, suggesting that a trend shift is likely to be in progress.
The Bollinger Bands‘ tightening already indicates that Ethereum’s price volatility has diminished.
This minor price increase could potentially propel ETH to new heights if the fundamental metrics dictated by retail traders turn positive.
As previously reported by Coingape, the number of ETH Hodlers has increased year-to-date (YTD) according to Sentiment data.
This suggests that a significant number of individuals are optimistic about the coin’s long-term prospects, which could potentially contribute to its price recovery.
Ambitious ETH Forecast Looks Ahead
There are several factors to maintain a positive outlook regarding Ethereum price.
Initially, the Pectra upgrade is in progress and is expected to be released later in Q1.
Additionally, developers have scheduled the Fusaka Upgrade after Pectra, indicating a consistent effort to ensure the protocol’s functionality.
Asset managers such as Bitwise have predicted a $7,000 price forecast for the coin as a result of this ecosystem enhancement.
Although a $4000 rebound in January may be considered a significant accomplishment, there is still a high expectation of greater growth for the year.