Ethereum Price Forecast: ETH resumes quest to tackle $4,093 resistance as investors begin accumulation
Ethereum price today: $3,670
- Ethereum investors withdrew over 80K ETH from exchanges last week.
- ETH market sentiment is weak despite its recent price appreciation.
- Ethereum could rally above $4,093 to tackle its all-time high resistance after posting an inverted H&S pattern on the weekly chart.
Ethereum (ETH) briefly traded above $3,700 on Monday following a slight increase in accumulation among investors last week. If the accumulation trend continues, ETH could validate an inverted head and shoulders (H&S) pattern by rallying above the $4,093 resistance.
Ethereum investors begin accumulation despite weak sentiment
In anticipation of the crypto market having a positive January similar to the past two years, Ethereum investors transferred over 80K ETH worth nearly $300 million off exchanges to private wallets last week, per CryptoQuant's data. The move signifies a bias toward accumulation as investors return to the market in full swing this week.
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ETH Exchange Reserve. Source: CryptoQuant
Specifically, most of the accumulation activity came from entities holding between 1K and 10K ETH. However, whales holding between 10K and 100K ETH shed portions of their holdings.
 [18.26.27, 06 Jan, 2025]-638717834892634795.png)
ETH Supply Distribution. Source: Santiment
Despite the accumulation, ETH's Weighted Sentiment is in a downtrend, signifying that most social mentions surrounding the top altcoin are slightly bearish. ETH could continue its rise in the coming days as prices tend to move in the opposite direction of retail sentiment, according to crypto analytics platform Santiment.
 [18.20.59, 06 Jan, 2025]-638717835277241676.png)
ETH Weighted sentiment. Source: Santiment
Additionally, the United States (US) jobs report on Friday is a key market mover to monitor as ETH's price and the crypto market take shape in 2025.
Meanwhile, Ethereum ETFs recorded net outflows of $38.1 million last week, per Coinglass data.
Ethereum Price Forecast: ETH could smash $4,093 if the inverted H&S pattern holds
Ethereum is up 2% after seeing futures liquidations worth $39.24 million in the past 24 hours. The total amount of liquidated long positions is $10.79 million and short liquidations accounted for $28.45 million, per Coinglass data.
On the weekly chart, Ethereum appears to be following an inverted H&S pattern after finding support near the 50-day Simple Moving Average (SMA) during a brief correction in December.
ETH/USDT daily chart
With ETH rising above the resistance near $3,550 last week, it could break the $4,093 neckline resistance of the inverted H&S pattern in the coming days. A firm breakthrough above this resistance, which has stood since March, may propel ETH to surpass its all-time high of $4,868.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) momentum indicators are above their neutral levels, signaling dominant bullish momentum.
A weekly candlestick close below the $3,000 psychological level will invalidate the bullish thesis.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
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