- Ethereum price dropped close to the $2,100 level early on Wednesday, entering a crucial demand zone.
- Over 5.58 million wallet addresses hold nearly 40 million Ethereum tokens in the demand zone.
- Analysts have predicted an ETH price rally to $3,000 since Ethereum’s breakout past the $2,000 level.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, declined to $2,148 early on Wednesday. The fall in prices follows a broader sell-off in the crypto market since Monday, likely driven by investors’ de-risking strategy ahead of a macro-packed week, with US Consumer Price Index (CPI) data for November and the US Federal Reserve (Fed) last meeting of the year.
Ethereum price has entered a critical demand zone, according to on-chain metrics, in which market catalysts could help determine where ETH is headed next.
Also read: XRP price drop to $0.55 likely amidst Senator Elizabeth Warren’s final push in US crypto legislation
Ethereum price reaches demand zone
Based on data from crypto intelligence tracker IntoTheBlock, Ethereum price has dipped into a demand zone considered crucial for the altcoin. The price range between $1,934 and $2,160 is key for Ethereum price as this is a range where 5.58 million wallet addresses accumulated nearly 40 million ETH tokens.
This makes the demand zone a critical support for ETH. According to Ali Martinez, a crypto analyst on X (formerly Twitter), this makes it an ideal reloading point for traders looking to add more Ethereum to their portfolio before the altcoin’s price rallies.
Global In/Out of the Money ETH. Source: IntoTheBlock
Ethereum price eyes $3,000 target
Several crypto analysts on X said Ethereum is primed for a rally. Since ETH price tested and broke out of the psychological barrier at $2,000, these analysts say the altcoin is ready to target the $3,000 level.
Crypto analyst behind the X handle @CryptoJelleNL argues ETH is ready to rally to $3,000 in the ongoing cycle.
ETH/USDT 1-week chart. Source: @CryptoJelleNL.
Another crypto analyst, Altcoin Sherpa (@AltcoinSherpa), agrees with @CryptoJelleNL’s thesis and notes that Ethereum is likely “one of the easiest trades.” Sherpa notes that after ETH consolidated under the $2,000 level for nearly two years, the altcoin is finally out of the range and ready to catch up to the $3,000 mark in the coming months.
$ETH: I still think that #Ethereum is 1 of the easiest trades you can take. It consolidated under the 2kish mark for almost 2 years and finally out of that range.
— Altcoin Sherpa (@AltcoinSherpa) December 12, 2023
This is going to catch up for sure and I think that ETHUSD goes to $3k in the coming months. pic.twitter.com/ddX8l2s5Ux
In its predicted run up to the $3,000 mark, Ethereum price is likely to face resistance in the range between $2,160 and $2,247, where 1.04 million wallet addresses bought 5.49 million ETH tokens, according to IntoTheBlock data. A break past $2,247 is key to validating the bullish thesis for ETH.
At the time of writing, Ethereum price is $2,171.38 on Binance. The altcoin is trading sideways close to the $2,100 level, after yielding nearly 5% weekly losses for holders.
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