The digital currency ecosystem is experiencing a rebound today, with the price of Ethereum (ETH) in the spotlight. Over the past 24 hours, the combined crypto market cap has jumped by a marginal 0.22% to $3.3 trillion. As the second-largest coin, the prospect of ETH price sustaining the uptrend and reclaiming the $4,000 mark remains up for speculation.
Ethereum Price: Product of Changing Metrics
Per current market data, Ethereum is up 2.2% in 24 hours to $3,267.90. Within this period, the coin moved from a low of $3,219.69 to a high of $3,319. Despite this uptick, some core Ethereum metrics, including the trading volume, are currently down. This metric, which determines the current ecosystem liquidity, is down by 57.57% to $13.25 billion.
Beyond the volume, the Ethereum price reacted opposite to the whale transaction figures. Per data from IntoTheBlock, whales have shuffled just 1.96 million ETH overnight, worth $6.37 billion.
For reference, Dogecoin, with a lower market capitalization, has a $23.35 billion record in whale transactions in the same period.
While an earlier ETH price analysis hinted at the likelihood of reclaiming a new all-time high (ATH), these bearish onchain metrics suggest others.
Prospect of ETH Price to $4,000
Ethereum has failed several attempts to reclaim the $4,000 resistance level since it dropped from here on December 17.
The ETH/USDT 4H Chart shows a slowing volatility. The selloff of the past few days saw its Relative Strength Index (RSI) fall to 42, almost to the oversold level. With the Moving Average Convergence Divergence indicator (MACD) line just crossing above the signal line, a trend shift is likely underway.
The close squeeze of the Bollinger Bands already proves that the volatility of Ethereum’s price has been reduced. Should the core metrics dictated by retail traders turn positive, this minor price gain might help send ETH to new levels.
As reported earlier by Coingape, the number of ETH Hodlers has grown Year-to-Date (YTD) per Santiment data. This implies many believe in the long-term prospect of the coin, which may further fuel price rebound.
Ambitious ETH Forecast Ahead
There are some reasons to stay optimistic about the price of Ethereum. First, the Pectra upgrade is advancing, and it is projected to launch later in Q1. Besides, developers have lined up the Fusaka Upgrade after Pectra, showing a steady push to make the protocol functional.
This ecosystem enhancement has prompted asset managers like Bitwise to predict a $7,000 price target for the coin. While a $4000 rebound in January might be a big feat, expectations of bigger growth for the year remain high.
The post Can The Ethereum Price Rebound To $4,000 This January? appeared first on CoinGape.
