Bitcoin

Ethereum (ETH) Price to Break $4,000 After Bitcoin’s Latest Move? – FX Empire


Unsurprisingly, ETH holders have shown resilience amid the mild pullback experienced in the last 3 trading days. 

Ethereum Investors Reluctant to Book Profits Despite Price Hitting 2-Year Peak 

Thursday February 29 marked the first time Ethereum price hit $3,500 since April 2022. But remarkably, the move was quickly followed by a mild-pullback resulting in a tepid start to March 2024. 

In contrast to Bitcoin (BTC) which saw its long-term investors carry out their highest profit-taking in 45 days, ETH investors have opted to hold amid the market retracement.. 

Santiment’s Age Consumed metric, tracks long-term investors trading activity, by multiplying the number of coins recently-moved by the number of days since they were last traded. 

As seen below, Ethereum Age Consumed values have dropped from 54% from 151.8 million to 69.8 million between Feb 28 and March 1. 

Ethereum (ETH) Age Consumed vs. Price | Source: Santiment

Declining values of the Age Consumed typically means that investors are generally holding their coins longer. More so, if it occurs while an asset is trading at a 3-year peak as observed above, it signals an overwhelming bullish conviction among long-term investors that prices will rise even higher.

Evidently, the positive narratives surrounding the widely-anticipated Ethereum ETF approval, and the Dencun upgrade launch now slated for March 13, may have influenced the investors outlook. 

Prediction: Can ETH price reach $4,000 in March 2024? 

As things stand, Bitcoin investors redirecting capital towards altcoins, and existing investors are reluctant to sell. These two factors could combine to form a major catalyst for Ethereum price to move above $4,000 in March 2024. 

This bullish Ethereum price prediction is further affirmed by IntoTheBlock’s Global In/Out of The Money metric, which groups all existing Ethereum investors according to their entry prices. 

However, it shows that the bulls must scale the initial resistance at $3,600. As seen below, 235,680 existing holders had bought 593,350 ETH at the minimum price of $3,624, forming the largest cluster of potential profit-takers within 20% boundaries of the current prices. 

But if the bulls capitalize on the two potential catalysts analyzed above, ETH price will likely smash through the $3,600 resistance in March 2024 and advance towards $4,000. 

Ethereum Price Prediction: Can ETH Reach 4,000 in March, 2024, | Source: IntoTheBlock

On the flip side, the bears could negate this optimistic forecast if they can force a downswing below $3,000.

But this appears far-fetched in the short-term, considering the looming buy-wall mounted by the 1.84 million addresses who had acquired 4.3 million ETH at the $3,118 territory.



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