Crypto analyst Ali says Ethereum is playing a game of limbo and high jump. The key support level is chilling between $3,030 and $3,130, while the resistance wall is flexing up at $3,640 to $3,740.
The most significant support level for #Ethereum $ETH is between $3,030 - $3,130, and the most significant resistance wall is $3,640 - $3,740. A sustained close outside of this no-trade zone will determine the direction of #ETH's trend. pic.twitter.com/YCGKucGvjt
— Ali (@ali_charts) December 23, 2024
If ETH decides to break out of this no-trade zone, we’ll finally see whether it’s headed for the moon—or back to Earth.
GOOD NEWS IS: Ethereum (ETH) is having a little holiday cheer, climbing 2.2% in the past 24 hours to hit about $3,430 on Dec. 24.
While Bitcoin hangs out near $94,000, playing it cool, altcoins seem to have activated party mode, and ETH, the undisputed king of all altcoins is no exception.
The festive surge comes as the U.S.-based spot Ethereum ETFs see some love from investors with a renewed surge in capital inflows.
Ether’s 24-hour gains come as Bitcoin takes a rare backseat, posting its sharpest underperformance against altcoins this year.
The Dominance Index
The Bitcoin Dominance Index (BTC.D), which measures BTC’s market cap flex against the rest of the crypto crew, slipped 1.84% on Dec. 23.
That’s BTC’s worst daily showing since January 2024—but it somewhat proves that Bitcoiners went out to touch the grass or enjoy their lambos this holiday season.
But Ethereum’s market dominance (ETH.D) pumped to action by 2.65%, suggesting Bitcoin’s losses were basically Ether’s gain. It’s like Nakamoto’s cronies dropped the ball, and Vitalik’s right hand men were right there to catch it—teamwork.
Historically, moves like this signal the start of an "altcoin season," where bigger players like Ether steal the spotlight from Bitcoin.
Independent market analyst Mister Crypto (yes, that’s the name) points to a potential trend shift, predicting Bitcoin’s dominance could take an even bigger hit in the weeks ahead.
His take?
The Bitcoin Dominance Index (BTC.D) just slipped below a long-term ascending trendline—a pattern that eerily mirrors the 2021 cycle, which kicked off a major altcoin season back in that year.
Interestingly Bitcoin's dominance took a nosedive 31 bars—or 217 days—after its halving event in 2021, sparking a massive capital migration into altcoins.
Fast forward to today, and history seems to be pulling a rerun.
BTC.D is breaking down again, right on cue, 31 bars after the latest halving. Coincidence? The charts seem to think not.
Renewed ETF Inflows Fuel Ether’s Momentum
The price rally for ETH is closely linked to a resurgence in ETF inflows and positive outlooks on Ethereum’s growth potential.
On December 23, Ethereum ETFs recorded $130.8 million in inflows, nearly compensating for the outflows observed in the prior two days, according to data from Farside Investors.
Overall, U.S.-based ETFs have seen $1.47 billion in inflows in December, making it their strongest performance since their launch in July.
On December 19 president of the ETF Store, Nate Geraci, highlighted that Ethereum ETFs are following a similar trajectory to the early adoption phase of gold ETFs, which launched in November 2004.
Geraci projected that inflows into Ethereum ETFs could gain substantial momentum in the near term as investor interest continues to rise.
Updated chart showing cumulative flows into gold, btc, & eth ETFs...
— Nate Geraci (@NateGeraci) December 19, 2024
Gold ETFs launched Nov 2004.
Btc ETFs in Jan 2024.
Eth ETFs July 2024.
Eth ETFs currently on pace w/ gold, but I expect inflows to accelerate from here.
Btc ETF flows are simply ridiculous.
via @Todd_Sohn pic.twitter.com/efh8Hezz3e
Final Takeaway
Ethereum’s recent price movements reflect a dynamic interplay of market factors, including ETF inflows, shifting dominance metrics, and broader altcoin market trends.
With historical patterns suggesting the potential for an extended altcoin season and renewed investor interest in Ethereum-backed ETFs, the stage appears set for Ether to continue gaining momentum.
But as always, market conditions remain fluid, and sustained growth is really dependent on Ethereum's capabilities to surpass key resistance levels and the broader macroeconomic trends.
Richard Adrian
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