The digital money ecosystem is showing signs of recovery today and Ethereum (ETH) $3,243.3 The price attracts attention. In the last 24 hours, the total value of the cryptocurrency market increased by 0.22% to 3.3 trillion dollars. As the second largest cryptocurrency, it is a matter of curiosity whether ETH can continue its upward trend and regain the $ 4,000 level.
Ethereum Price: Impact of Changing Metrics
According to current market data, Ethereum is up 2.2% in the last 24 hours to $3,267.90. During this time, the coin gained value from $3,219.69 to $3,319. However, some key Ethereum metrics, such as transaction volume, are declining. This metric, which determines the liquidity of the ecosystem, decreased by 57.57% to 13.25 billion dollars.
Besides trading volume, Ethereum price is counterproductive to major investors’ trading data. According to IntoTheBlock data, large whales moved only 1.96 million ETH, or $6.37 billion, during the night.
ETH Expected to Reach $4,000
Ethereum has failed in several attempts to regain the $4,000 resistance level since December 17. On the ETH/USDT 4-hour chart, volatility appears to be slowing down. Selling pressure over the last few days has caused the Relative Strength Index (RSI) to drop to 42 and approach oversold levels. It is stated that a trend change may occur when the Moving Average Convergence Divergence (MACD) line crosses just above the signal line.
The narrowing of the Bollinger Bands indicates that volatility in the Ethereum price is decreasing. This small price increase could push ETH to new highs if the fundamental metrics determined by retail investors turn positive.
Ambitious Ethereum Predictions for the Future
There are some reasons to remain optimistic about the Ethereum price. First, the Pectra upgrade is expected to progress and launch in late first quarter. Additionally, the developers are taking a steady step towards increasing the functionality of the protocol by planning the Fusaka Upgrade after Pectra.
Asset managers such as Bitwise are predicting a $7,000 price target for Ethereum.
These ecosystem improvements have led asset managers like Bitwise to estimate a $7,000 price target for the coin. While a return to $4,000 in January would be a major achievement, expectations for greater growth for the year remain high.
It has also been reported that the number of ETH HODL has increased since the beginning of the year, according to Santiment data. This shows that many people believe in the long-term potential of the coin, which could trigger a price recovery.
The constantly evolving Ethereum ecosystem continues to offer various opportunities for investors. Technological upgrades and increasing HODL rates give positive signals about the future performance of the coin.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
