What to Expect from Ethereum (ETH) in December 2024: Analysts Weigh In

by

As a seasoned crypto investor with over a decade of experience navigating the ever-changing digital asset market, I find myself intrigued by the bullish predictions surrounding Ethereum (ETH) for December. Having witnessed numerous market cycles and trends, I can’t help but feel a sense of cautious optimism when it comes to ETH’s potential new highs.

Over the last thirty days, the value of Ethereum (ETH) has soared by an impressive 33%, sparking discussions about its potential to reach even greater heights. However, with the month coming to an end, it appears that such a feat might be unlikely. Still, analysts’ forecast for December could result in further profits for investors holding Ethereum.

In this piece, we delve into these predictions, identifying the main factors fueling the optimistic outlook towards Ethereum.

Analyst Bullish on Ethereum, but Give Conditions

As per Juan Pellicer, Senior Researcher at IntoTheBlock, Ethereum might reach a record-breaking peak by the end of December. But for this to happen, according to his viewpoint, Ethereum needs to surpass the $4,000 mark first.

Additionally, it was pointed out by the researcher that Ethereum (ETH) might mirror Bitcoin‘s performance under these circumstances. This suggests that the influence of significant investors amassing assets and active retail participation could play a crucial role in its potential success.

According to Pellicer’s assessment, Ethereum seems to be following a similar upward trend as Bitcoin, suggesting a strong possibility of a year-end surge. If Ethereum manages to surpass its previous all-time high of $4,000, this rally could pick up speed. His on-chain analysis focuses on the accumulation patterns of large investors, hinting at active buying from both institutional and retail sectors. (BeInCrypto)

Currently, the rate at which large Ethereum holders are adding to their holdings (whale accumulation) has decreased, implying that whales might not be acquiring as much Ether as they were in previous days. If this trend persists, it could make it difficult for Ethereum’s price to reach $4,000 by the end of next month.

Conversely, should these holders start amassing assets once more, there’s a possibility that the outlook may shift, making the Ethereum December prediction potentially optimistic.

For Brian Quinlivan, Lead Analyst at Santiment, one key metric to monitor is Ethereum’s funding rate on BitMex and Binance. The funding rate shows if longs (buyers) are dominating shorts (sellers) in the derivatives market.

In a favorable situation, long positions tend to prevail. Conversely, if it’s unfavorable, short positions take control. As we speak now, the funding rates on both platforms are extremely positive, signaling that long positions are predominant and many traders anticipate an increase in ETH’s price during December.

Yet, according to Quinlivan’s perspective, it’s important for the metric to maintain a balanced approach to allow Ethereum’s value to potentially surpass Bitcoin’s.

In these leading cryptocurrency exchanges, the long positions are prevailing over the short ones. This suggests that any substantial increase would be challenging due to the high odds against it. Typically, for significant price surges to occur, funding rates should either remain balanced or slightly favor shorting, as the analyst explained to BeInCrypto.

As a crypto investor, I’ve been closely following the insights of Julio Moreno, Head of Research at CryptoQuant. According to him, by using the Market Value to Realized Value (MVRV) ratio, he suggests that Ethereum is approaching an underpriced state compared to Bitcoin for the upcoming month.

The MVRV ratio is a key metric that shows if an asset is undervalued or overpriced.

From the picture and past records, Moreno proposes that Ethereum (ETH) could possibly follow the same price trend as it did starting from February 2020 – a timeframe that signified the start of its climb towards its record peak in 2021.

As we speak, the comparison of Ethereum’s value to Bitcoin (depicted by the violet line on the graph) is nearing an unusually low region (the green area). It’s worth noting that the last time Ethereum was this inexpensive compared to Bitcoin was back in February 2020, as mentioned by Moreno during his discussion with BeInCrypto.

ETH Price Prediction: 4,000 or More on the Table

Looking at its technical structure, Ethereum appears to have developed a ‘bull pennant’ on the daily chart. This pattern is characterized by an initial steep upward trend, or the ‘mast,’ which is followed by a more gradual sideways move, called the ‘pennant.’

As a researcher observing the Ethereum market, I’ve noticed that when its price forms a consolidation pattern, it often signals an impending breakout. This breakout phase usually involves a period where the price stabilizes and accumulates strength before making a significant upward move. In this specific case, Ethereum’s price has indeed broken out of the consolidation phase, suggesting that we might be on the verge of a bullish trend.

Despite encountering pushback near $3,600, there’s a strong possibility it will rebound again. If this occurs, Ethereum’s December forecast suggests its value could surpass $4,000. Conversely, if Ethereum experiences a wave of selling, the trend may shift, potentially causing ETH to dip down to $3,003.

Read More

2024-11-29 13:32