Ethereum dips to crucial demand zone, analysts predict ETH price rally to $3,000


  • 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.

ETH

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

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. 

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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