Ethereum has been on a roll lately, climbing over 6% in the last 24 hours. It’s now eyeing the $4,000 mark—a level that’s acted as a tough barrier over the past couple of weeks. If ETH manages to hold steady at this point, we could see it making a move toward $4,200.
This comes immediately after Bitcoin jumped back over $100,000 following the U.S. economic data suggesting a possible interest rate cut in December.
Quick Ethereum Price Recap
After touching $4,093 last Friday, ETH faced some heavy selling pressure, dipping back to $3,800. But here’s the good news: it held that support and has bounced back. Now, the next big test is the $4,100–$4,200 range.
The Relative Strength Index (RSI) is still below neutral, suggesting bearish vibes linger. But the bigger players—whales and institutional investors—seem to be buying the dip, signaling strong confidence.
Meanwhile, prominent Ethereum researcher Max Resnick announced he’s leaving his role as Ethereum’s head of research at Consensys' Special Mechanisms Group to join Solana research firm Anza.
Solana vs Ethereum pic.twitter.com/aqSLZzkz9z
— dubzy (@dubzyxbt) May 20, 2024
Resnick, a vocal advocate for L1 scaling and a critic of Ethereum’s Layer 2 approach, shared on X on December 9 that he’s "taking his talents to Solana."
Last week was my last week at Consensys. Today is my first day at @anza_xyz.
— Max Resnick (@MaxResnick1) December 9, 2024
I’m taking my talents to Solana.
In my first 100 days, I plan on writing a spec for as much of the Solana protocol as I can get to, prioritizing fee markets and consensus implementations where I…
So, What’s Next for Ethereum?
On December 5, ETH popped to $3,800 and briefly broke $4,000. Along with the price hike, Ethereum’s Realized Cap hit a record $243.45 billion, showing growing market trust. And with a massive $428.5 million flowing into Ethereum ETFs recently, it’s clear investors are bullish.
Another bright spot: Ethereum’s MVRV Long/Short Difference just turned positive, sitting at 5.67%. This means long-term holders are back in profit—a great sign for upward momentum. Last time we saw this, ETH blew past $4,000.
With RSI now mirroring trends from earlier this year when ETH hit its peak, some analysts think $4,500 could be within reach if the current momentum holds. Buckle up—Ethereum might be gearing up for another breakout.
The big question now is: how high can Ethereum go? Analysts are eyeing $4,200 as the next big target, but if the buying pressure stays strong, there’s room for even more upside.
That said, if the momentum cools off, ETH could dip below $3,500. It’s a tightrope situation right now, and the short-term could swing either way.
Final Take
Still, many believe Ethereum is undervalued despite its recent rally. The $428.5 million pouring into ETFs shows growing institutional interest, which could push the price even higher.
Ethereum’s Realized Cap also tells a bullish story—it’s a clear sign that sentiment is strong and could lead to a sustained rise.
With solid market data and increasing confidence from investors, Ethereum’s climb might not stop at $4,000. This could just be the start—keep an eye on ETH; an all-time high might be on the horizon.
Abimbola Adu
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