Ethereum is back above $4k—it was expected. There are encouraging higher highs as per the development in the daily chart.
However, it is not to say buyers are firmly in control. If anything, ETHUSDT is in range, bound by the bear bar of December 13.
This alone is bearish unless there are sharp gains above $4.2k, confirming gains of December 23.
Ethereum Market Performance and Price Status
Fundamentally, Ethereum remains a world computer considering its stellar performance in the past few months.
The network holds several accolades, first as the home of DeFi and second as the most active network for the minting of NFTs.
When news float around that there are more searches for NFTs than crypto for the first time, this flipping indirectly means Ethereum is also one of the most discovered networks.
2/ “NFT” searches recently crossed “Crypto” according to worldwide Google search trends.
— Delphi Digital (@Delphi_Digital) December 24, 2021
It is factoring in the network’s mega share in the wildly popular field. As we advance, this is a net positive for Ethereum and could help burn more ETH through EIP-1559, directly drawing more demand for ETH.
A look at the ETHUSDT daily chart meanwhile points to sideways movements as mentioned earlier.
Although there are gains, as shown in the December 23 bull bar, the ETH rally is still limited.
For instance, ETHUSDT prices are within the December 13 bear candlestick. This is bearish from an Effort versus Results perspective.
Buyers will only flow back should there be a confirmation of yesterday’s bull bar, driving prices above $4.2k in continuation of bullish attempts of the past few days.
Notice that there are higher highs relative to the lower BB, helping slow down sellers of December 4 and 13.
Ethereum’s Realized Price Surge to All-Time Highs of $1,923
Numbers don’t lie. Right now, Ethereum might be trading above $4k. However, on-chain data reveal that Ethereum’s realized price is at a new all-time high of $1,923.
— glassnode alerts (@glassnodealerts) December 24, 2021
This is a massive development for the network. Usually, realized price—a variation of market cap—is a closely watched metric.
The realized price is the average cost basis of ETH at any point in time. When the realized price is rapidly appreciating, it means that the crypto asset in question is in a strong bull market.
Therefore, the breach of the realized price of ETH to new all-time high means despite the stagnation of prices at spot rates and above $4k, there could be more upsides for the coin in the days to come.
ETH Momentum is Shifting Higher
From the daily chart of the ETHUSDT chart, the upward momentum is beginning to change for Ethereum.
— Matthew Hyland (@Parabolic_Matt) December 23, 2021
One trader on Twitter notes that the daily RSI is bottoming up from the oversold territory, moving in lock-step with prices which is also edging higher.
He further observes that ETHUSDT RSI in the secondary chart of the daily chart broke above the main resistance trend line. Accordingly, with the base set and momentum shifting to favor ETH bulls, the probability of prices galloping higher looks high.
ETHUSDT Retesting Critical Support
On YouTube, one trader is confident in ETH prospects.
He notes that prices recently broke up above a falling wedge–as per the developments in the 6HR chart. Therefore, a retest could see ETH prices fly in the days ahead should the previous resistance turn support.
If there is a confirmation of bulls, ETHUSDT might surge to $4.7k—the swing high.
Chart Courtesy of Trading View
Disclaimer: Opinions are those of the author and are not financial advice. Do your research.
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