- ETH has stabilized at $3.5K despite an aggressive $400M sell-off.
- Here’s why $3.7K and $3.8K could be reachable in the short term.
Ethereum’s [ETH] recent sell-off hit levels last seen in 2021 peak, but the altcoin firmly held above $3.5K.
According to CryptoQuant, the ETH monthly average sell-off hit $400 million in negative net taker volume, rivaling the selling pressure experienced when the altcoin peaked at $4.8K last cycle.
Source: CryptoQuant
Ethereum rally: $3.5K support
However, analysts believe the altcoin could be far from peaking this cycle. Since late November, ETH has held above the $3.5K support level, and the recent aggressive sell-off was halted at this level.
This has reinforced the $3.5K level as a key short-term support for ETH’s potential upside move.
Source: ETH/USDT, TradingView
Market analyst Eugene Ah Sio shared a similar outlook but warned that a drop below $3.5K could dent market sentiment on the ETH and the overall altcoin market.
Marking key support levels for top majors (BTC, ETH, SOL), he said,
“94k/3.5k/200. These are the levels I think market has established as key support levels. Lose this and all of a sudden holding alts in your pf don’t seem like a good idea anymore. Hold these levels and it’s still game on.”
That said, the demand from US spot ETH ETFs remained strong, despite apparent profit-taking for some holders. On the 10th of December, the products logged $305.74M in daily inflows.
Source: Soso Value
This marked twelve consecutive days of inflows, reinforcing a strong bounce above $3.5K.
So, how far can ETH price go from this support? The Hyblock liquidation heatmap data offers insights into key short-term levels that ETH could target.
According to the latest liquidation levels, which show a high concentration of leveraged positions, the immediate upside levels are $3.69K and $3.72K. Other targets include $3.8K, $3.9K, and $4K.
These are leveraged short positions that could attract price through a liquidity hunt. The leveraged positions at $3.5K have been tapped, increasing the odds of ETH reaching these upside liquidity levels.
Read Ethereum [ETH] Price Prediction 2024-2025
Source: Hyblock
On the lower side, two more liquidity levels, $3.4K and $3.38K, were present. If ETH slips lower, these could be the next key support.
