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Why Ethereum (ETH) Might Struggle to Reach $4,000 in the Short Term



The price of Ethereum (ETH) rebounded this week from the low of $3,100, reviving hopes of new highs for the altcoin.


However, the propensity of Ethereum investors to make profits may hinder this process.



Ethereum price rise calls for restraint from investors



The price of Ethereum rose to $3,642 at the time of writing, bringing investors back to the network. However, their actions do not live up to expectations.


Transferring Ethereum from one address to another shows that the current price is higher than the last price. This shows that the supply held by these addresses is generating profits, which will encourage other investors to follow the same path.


Ethereum made profits.
Ethereum profits generated. Source: Feeling

This is an indication of potential profit realization that could arise, which would accelerate the sell-off among Ethereum holders.


The Ethereum price decline is already at great risk as investors unload their holdings into exchange wallets. The net position change shows that around 374,130 ETH worth over $1.36 billion was sold in the last 10 days. In the last 24 hours alone, investors sold over 52,030 ETH worth $190 million.


Change in Ethereum net position.
Change in Ethereum's net position. Source: Glass knot

Therefore, as profits increase, sales will accelerate, which may soon cause the rally to end.


ETH Price Prediction: Countdown to $3,000



Ethereum price managed to reclaim the 50-day and 100-day exponential moving average (EMA). However, given the profit-taking sentiment, Ethereum price could decline to find support at the $3,336 level, which coincides with the 100-day EMA.


If this support is also lost, $3,031 is the next potential support level, which coincides with the 23.6% Fibonacci retracement from $4,626 to $2,539.


ETH/USDT 1-day chart.
ETH/USDT 1-day chart. Source: Trading View

On the other hand, ETH has already reversed the 50% Fibonacci retracement. This could invalidate the bearish thesis if it sees further growth and returns the 61.8% Fibonacci line to support.



Read more: Everything you need to know about Ethereum funds and altcoin season


The reason is that the latter serves as an uptrend support floor and tends to restart the rally. At $3,830, ETH could rise further from here.







Of confidence



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الأسواق,تحليل الإيثيريوم (ETH)

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