Ethereum has been making waves in the market, reaching a six-month high of $3,688 on November 28. While the price didn’t hold at that level for long and slipped back to $3,580, it still managed to end the week with a 5% gain. This comes after an impressive 18% jump earlier in the week, leaving investors wondering if Ethereum is gearing up for an even bigger move or if this is just another tease.
The sentiment in the market is definitely bullish, with more traders in the futures market betting on ETH going up. However, the level of optimism is nowhere near the peak seen in 2021 when Ethereum reached $4,890. Despite this, the majority of ETH holders are currently in profit, with 88% of them enjoying gains at the current prices. Another 4% are breaking even, while only 8% are in the red. On-chain data reveals that many investors bought ETH between $3,489 and $3,707, finding this price range to be favorable. Those who entered the market above $3,707 are still waiting for the market to make its move.
While the price of Ethereum has been on the rise, the Relative Strength Index (RSI) has been falling, indicating a loss of momentum. If prices continue to drop, ETH could potentially head towards its next major support level at $3,046. Additionally, trading volume has seen a significant decline of 34.90% in the past 24 hours, signaling a decrease in buying and selling activity. Even whales, the big-money investors, appear to be uncertain, with data showing an equal split between long and short positions.
In terms of what’s next for Ethereum, the outlook is mixed. While there is optimism among investors and many are currently sitting on profits, technical indicators like the RSI and trading volume are raising concerns. The question remains whether Ethereum will surpass $3,688 and aim for new highs, or if a period of consolidation or correction is on the horizon. The uncertainty in the market makes for an interesting watch as investors wait to see how Ethereum’s price action unfolds.