- Despite an impressive fourth quarter, Ethereum’s price attempted and failed to rally beyond the resistance level of around $2,340 in December, but the bulls are in good shape to push high in the near term.
- Amid the ongoing Bitcoin bullish breakout, the ETHBTC pair has been holding a crucial support level and is ready to bounce back, thus indicating better times ahead for Ethereum and the altcoin industry.
Ethereum (ETH), a stable blockchain network with more than $29.6 billion in Total Value Locked (TVL) and over $67 billion in the stablecoins market capitalization, has significantly capitalized on the rising demand for web3 industry and digital assets around the world.
Having demonstrated deep liquidity underpinned by the vast ERC20 ecosystem and the robust NFT industry, Ethereum has continued to attract more institutional investors seeking to diversify their crypto portfolio from Bitcoin (BTC).
Furthermore, the Ethereum network can be described as sound money since the implementation of the Proof-of-Stake (POS) consensus mechanism, which has attracted more than 903k validators with over 28.8 million ETH staked, through the merge event and the Sharpella upgrade.
The Ethereum network has been deflationary since the EIP-1559, with more than 3.8 ETH already burned. Such developments have attracted more decentralized financial (DeFi) developers seeking to tap into the Ethereum Virtual Machine (EVM). According to on-chain data, the Ethereum network has more than 77.9 million non-zero addresses, with the average daily transactions amounting to about 1 million, double that of Bitcoin.
Ethereum co-founder Vitalik Buterin recently highlighted the need for the developers to continue working on the layer two scaling solution in a bid to ensure a sustainable adoption of the web3 industry and digital assets. Additionally, Buterin applauded the Ethereum team for remaining focused on the initial roadmap that did not change course throughout 2023.
Significant progress on the Surge (rollup scaling) this year, both on EIP-4844 and from rollups themselves.https://t.co/uEjd2VETQU continues to be a good page to follow.
Also, cross-rollup standards and interop has been highlighted as an area for long-term improvements. pic.twitter.com/ixUsZEo7pi
— vitalik.eth (@VitalikButerin) December 30, 2023
Closer Look at Ether Price Analysis
Amid the ongoing Bitcoin price breakout fueled by the spot Bitcoin exchange-traded funds (ETFs) in the United States, Ethereum (ETH) price has also enjoyed a gradual bullish breakout. Notably, Ethereum price has successfully retested the resistance/support level around $2,130, which had proved to be a nutshell throughout the crypto bear market.
As a result, ETH price is well positioned to continue on a bullish outlook in the near term. According to the on-chain data analysis provided by Glassnode, Ethereum’s Market Value to Realized Value (MVRV) pricing band shows that the next key target range for ETH price is between $3,830 and $5,100.
A similar bullish narrative has been issued by a popular crypto analyst on the X platform alias Captain Faibik who noted that ETH price is on the cusp of a 20 percent breakout after rallying above a recent ascending triangle formation.
$ETH Ascending triangle formation in the Daily timeframe Chart.
+15-20% Bullish Rally incoming..
#Crypto #ETH #Ethereum pic.twitter.com/ga1JdSTamB
— Captain Faibik (@CryptoFaibik) January 2, 2024
ETH Market Outlook
The large-capped altcoin has experienced astronomical network growth in the past two years despite the devastation of the 2022/2023 crypto bear market. Notably, the Ethereum network has grown to a mature and stable web3 ecosystem with a market cap of about $300 billion and an average 24-hour trading volume of about $15 billion. Having opened the new year with a bullish outlook, ETH has gained more than 6 percent in the past two days to trade at
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