New ATH or another severe correction?

TL;DR

Analysts are predicting that ETH could reach $5,000 or even $10,000, with key resistance at $3,750 indicating a potential breakout. The increase in daily active addresses and positive network growth suggest increasing adoption of Ethereum, supporting a bullish outlook.

Where is ETH headed?

The second-largest cryptocurrency broke last week, with its price briefly surpassing $4,000 on December 6. This was the highest level seen since March 2024.

Since then, however, ETH started to lose steam and fell to around $3,500 amid the latest market correction seen at the start of the new trading week. In the last few hours, the bulls have avoided another drop, pushing the price up to the current $3,720 (according to CoinGecko data).

ETH price, Source: CoinGecko

Despite ETH’s shaky performance recently, several analysts remain optimistic that the asset has yet to hit new highs. Popular trader using the nickname X CoinMamba predicted a new all-time high of $5,000 before the end of 2024.

My goal for $ETH it’s still $5,000 at the end of this year. Do whatever you want with this information…

— CoinMamba (@coinmamba) December 10, 2024

User X Skew also envisioned a potential bombshell for ETH if it regains the $3,750 resistance level. However, the trader remains quite pessimistic if the valuation falls below $3,500.

Crypto Patel presented a bullish scenario, according to which the price of ETH could shoot up to a new ATH of $10,000. User X also surmised that there was a chance of a potential crash in the $2,500-$2,800 range, describing it as “the perfect accumulation zone.”

What are chained metric signaling?

Some key indicators suggest that ETH could be poised for an upward move. An example is the increase in daily active Ethereum addresses. According to IntoTheBlock, the number has increased by almost 7% on a 24-hour scale, surpassing 600,000.

This resurgence usually suggests growing use of the Ethereum blockchain, which in turn could lead to higher prices.

Another bullish metric is net network growth (a momentum signal “that gives a pulse of the actual growth of the token’s underlying network”). It rises 0.30% daily, entering the bullish zone.

On the other hand, the “In the Money” indicator, which measures the change in the number of ETH investors who currently have paper profits, has fallen slightly over the same period. At the time of writing, about 89% of those exposed to the asset are in the green, while only 8% are underwater.

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