FX.co ★ Alienist | #Ethereum chart analysis

•••Ethereum Price Action: Bullish Momentum Today(January 4,2025)••• • Ethereum (ETH) is making waves today, trading at around $3,595 USD, marking a solid 3.9% increase from yesterday’s close. It’s clear that the market is watching Ethereum closely, with price movements testing both resistance and support levels. The intraday high reached $3,623, while the low settled at $3,420, showing some volatility that has been the norm for this asset recently. ••Resistance and Support Levels: Key Price Zones • Ethereum is facing some strong resistance around the $3,600 mark. If it can break above this level, we may see a move towards previous highs near $4,000. However, the $3,420 support zone is crucial. If the price dips below this point, we could see further retracement toward $3,250. With such key levels in play, it’s anyone’s guess whether bulls or bears will take control in the coming days. ••Technical Analysis: What the Charts Are Saying • Looking at the charts, Ethereum appears to be riding a bullish wave. The Relative Strength Index (RSI) is sitting around 50, indicating that there’s no immediate overbought or oversold conditions—this gives room for more price movement in either direction. • The 50-day moving average (MA) is currently below the price, acting as strong support, while the 200-day MA lies a bit further, helping to keep the long-term bullish momentum intact. If ETH can hold above the 50-day MA, it might signal more upward momentum. However, if the price falls below this level, we could see the market turn cautious, and the 200-day MA could be tested as support. • The Moving Average Convergence Divergence (MACD) indicator is also showing a bullish crossover, which further supports the current uptrend. If the MACD continues to stay above the signal line, it could signal that the market is ready for more positive price action.

••The Sentiment: A Positive Outlook • There’s no denying the growing optimism surrounding Ethereum today. More than just price increases, the market sentiment is largely driven by confidence in Ethereum’s continued dominance in the decentralized finance (DeFi) space. Ethereum’s network has seen massive growth, with more applications and projects being built on it every day. The sentiment is solid, driven by both technical strength and real-world use cases that show no signs of slowing down. ••Ethereum’s On-Chain Growth • On-chain data reveals that Ethereum’s active address count continues to climb, signaling a growing user base and heightened network activity. This is a bullish sign, suggesting that Ethereum isn’t just an asset for speculative trading—it’s becoming a crucial infrastructure for the decentralized web. Additionally, more ETH is being staked on the network, reducing its circulating supply and creating potential for scarcity. These on-chain developments could drive Ethereum’s price even higher as the network grows. ••Potential Triggers to Watch • What’s next for Ethereum? The upcoming Proof of Stake updates and continued improvements to Ethereum’s scalability are key factors that could further fuel price gains. If the market continues to embrace Ethereum’s innovations, we might see continued price rallies, with new highs in sight.