Key Points
- Ethereum (ETH) maintains stability at $3.5K despite a $400M sell-off.
- Short-term targets of $3.7K and $3.8K are achievable, according to market analysis.
Ethereum (ETH) has weathered a significant sell-off, maintaining a steady price around $3.5K. This sell-off mirrored levels last seen at the altcoin’s 2021 peak, yet Ethereum held firm above the $3.5K mark.
CryptoQuant data shows that the monthly average sell-off for Ethereum reached $400 million in negative net taker volume. This level of selling pressure is comparable to when Ethereum peaked at $4.8K in the previous cycle.
Ethereum’s Resilience at $3.5K
Despite this, market analysts suggest Ethereum could still have room to grow this cycle. Since the end of November, Ethereum has remained above the $3.5K support level, even amidst aggressive sell-offs.
This resilience has solidified the $3.5K mark as a critical short-term support level for potential upward movement. However, market analyst Eugene Ah Sio warns that a drop below this point could negatively impact market sentiment towards Ethereum and the altcoin market in general.
Support from US Spot ETH ETFs
Despite some holders taking profits, demand from US spot Ethereum ETFs remains robust. On December 10th, these products recorded $305.74M in daily inflows, marking twelve consecutive days of inflows and reinforcing a strong bounce above $3.5K.
So, how far could the Ethereum price potentially rise from this support level? Data from the Hyblock liquidation heatmap provides some insight into short-term targets for Ethereum. According to the latest liquidation levels, the immediate upside targets are $3.69K and $3.72K, with other targets at $3.8K, $3.9K, and $4K.
These leveraged short positions could draw the price through a liquidity hunt. The leveraged positions at $3.5K have been tapped, increasing the likelihood of Ethereum reaching these upside liquidity levels.
On the downside, two more liquidity levels at $3.4K and $3.38K have been identified. If Ethereum were to slip lower, these could serve as the next key support levels.
