Ethereum price today: $3,650
Ethereum investors are selling due to potential price risk from an Israeli naval attack on Syria. Ethereum accumulation address growth has skyrocketed as researchers leave to join Solana. If Ethereum retests the key levels, it could overcome the yearly high resistance at $4,093.
Ethereum (ETH) fell nearly 1% on Tuesday, with recent market declines likely due to investors avoiding risk following Israel's naval attack on Syria. The top altcoin could recover soon as the balance of the accumulation address steadily increases and reaches 19.5 million ETH.
Ethereum falls amid Israeli attack, but increased accumulation could fuel recovery
The recent downturn in the Ethereum market may be due to the perceived risk surrounding Israel's naval attack on Syria. According to the New York Times, Israel aimed to destroy a suspected chemical weapons stockpile in Syria to protect it from extremist control.
Ethereum investors may be hedging risk by selling their assets in case the Israeli attack continues to impact broader markets. However, if risk aversion is not maintained, ETH could recover quickly and rise towards new highs.
Despite the recent price drop, ETH balances in accumulation addresses (addresses with zero inflows and outflows) have skyrocketed in the past few weeks, increasing to 19.5 million ETH, according to CryptoQuant analysts.
“If this trend continues, Ethereum could reach a new all-time high (ATH),” the analysts wrote.
Address your total balance with ETH accumulation | CryptoQuant
A similar trend was evident in the U.S. Spot Ethereum exchange-traded fund (ETF), which posted net inflows of $149.8 million on Monday, marking the 11th consecutive day of positive flows, according to Coinglass data. are. This shows that institutional investors are still bullish on ETH despite the recent price drop.
Meanwhile, Ethereum researcher Max Resnick announced that he will be leaving his position as research director at Special Mechanisms Group, a ConsenSys subsidiary, to join Solana's research firm Anza. Resnick, an advocate of L1 scaling, has been a strong critic of Ethereum's Layer 2 scaling approach, but wrote in an X post on December 9th that he is “bringing his talents to Solana.”
Last week was my last week at ConsenSys. today is my first day @anza_xyz.
I bring my talents to Solana.
In the first 100 days, we plan to specify as much of the Solana protocol as possible, prioritizing pricing markets and consensus implementation.
— Max Resnick (@MaxResnick1) December 9, 2024
Ethereum Price Prediction: ETH Could Overcome Yearly High Resistance at $4,093 if Retests Key Levels
Ethereum continued its recent downward trend, falling more than 1% in the past 24 hours after recording $141.34 million in liquidations. The total amount of long-term liquidations amounted to $113.3 million, while short-term liquidations amounted to $28.04 million.
ETH is trending towards the $3,550 level, which has served as an important support level for the past two weeks. If ETH rebounds from this level, it could move higher to retest the yearly high resistance at $4,093.
ETH/USDT 4 hour chart
ETH faced significant selling activity after reaching the $4,093 level on Friday. ETH is likely to retest and overcome this level as the recent sell-off has washed out most of the weak hands. However, if the $3,550 support level fails, the next important level to look at is the $3,252 level.
The Relative Strength Index (RSI) is below the neutral level, indicating that bearish momentum is prevailing.
This theory is invalidated if the candlestick closes below $3,252.
Ethereum FAQ
Ethereum is a decentralized open-source blockchain with smart contract capabilities. Its native currency, Ether (ETH), is the second largest cryptocurrency by market capitalization and number one among altcoins. The Ethereum network is tailored for building cryptographic solutions such as decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
Ethereum is a public decentralized blockchain technology that allows developers to build and deploy functional applications without the need for a central authority. To facilitate this, the network leverages the Solidity programming language and the Ethereum virtual machine, allowing developers to create and launch applications with smart contract functionality.
A smart contract is a publicly verifiable piece of code that automates an agreement between two or more parties. Essentially, these codes self-execute the coded actions if a given condition is met.
Staking is the process of earning revenue from idle crypto assets by locking them in a cryptographic protocol for a specified period of time as a means of contributing to security. Ethereum transitioned from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism on September 15, 2022 in an event dubbed “Merge”. This merger was an important part of Ethereum's roadmap to achieve high levels of scalability, decentralization, and security while maintaining sustainability. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier to entry for validators by leveraging the use of cryptographic tokens as the core foundation of the consensus process.
Gas is a unit that measures the transaction fees users pay to conduct transactions on Ethereum. When the network is congested, gas can be very high and validators may prioritize transactions based on fees.
