Ethereum Surpasses $4,000
Date: 2024-12-18 Author: Henry Casey Categories: CRYPTO PAYMENTS
At the time of writing, Ethereum is valued at $4,010, up 1.5% in a day. Trading volume over the past 24 hours has been around $2.5 billion, indicating strong investor interest.
Breaking the important $4,000 mark has strengthened the position of long-term investors (LTH). According to the analysis of the net unrealized profit/loss (NUPL) indicator, asset holders are showing confidence in the cryptocurrency’s further growth.
The LTH-NUPL metric measures the sentiment of investors who have held assets for more than 155 days, including such phases as capitulation, hope, optimism, faith, and euphoria. The indicator is currently in the "faith" zone, which usually precedes the start of a stable growth. If this trend continues, Ethereum may once again rush to its historical maximum of $4,891.
Another indicator, the market value to realized ratio (MVRV), also confirms optimism. According to Santiment, the current MVRV value for Ethereum is 8.73%, which indicates that the asset is undervalued. This suggests that the market is ready for further strengthening.
The cryptocurrency has already found support at $3,075, from where the upward movement began. The Bull Bear Power (BBP) indicator, which shows the balance of power between buyers and sellers, is now in the positive zone, indicating the dominance of the bulls.
Given the current data, the immediate target for Ethereum is $4,400. However, the return of the initiative to sellers may lead to a correction up to the support level of $3,578.
Amid continued demand and positive indicators, Ethereum continues to strengthen its position in the market. Investors will be closely watching further developments to determine whether the $5,000 mark will become a new high.
