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Ethereum has been consolidating for several months in a tight price range, exchanging between 3,200 and 3,500 dollars. Despite the recent bull movement of the market as a whole, the ETH is still struggling to get out of this range.
This stagnation comes after a prolonged drop compared to its historic summit of $ 4,800, recorded at the end of 2021. Cryptocurrency is now down approximately 32 % compared to this summit.
In particular, even the appointment of a new Pro-Crypto administration and a renewed feeling of regulatory clarity did not do much to propel Ethereum beyond its current levels of resistance.
Under these market conditions, Shayanbtc, a contributor to the Quicktake platform of cryptocurrency, A highlighted A critical measure which could point out an imminent evolution of the prices of the ETH.
Lever ratios raised in Ethereum and its implications
According to Shayan, in a recent analysis put online on the cryptocurrency platform Quicktake, the estimated lever ratio of Ethereum, a measure of the average lever effect used by the actors of the term market, has increased regularly .
This increase reported by Shayan reflects an increased desire for traders to take risks, even if the price of Ethereum remains blocked in consolidation. With a lever effect at high levels, the decor could be prepared for a significant variation in prices, even if its direction remains uncertain. Shayan noted:
The imminent break of this fork, motivated by the high debt environment, should trigger a significant and impulsive price movement.
Shayan explained that as more and more traders are adopting a higher lever effect, the market becomes more vulnerable to high price variations. Indeed, if these leverage positions are liquidated – whether by short or long compression – this could trigger a sudden and significant adjustment of prices.
Consolidation in progress around 3,200 to 3,500 dollars increased interest in the future of Ethereum. The cryptocurrency analyst wrote:
Given the dominant feeling of the market, a bullish break seems more likely. However, traders must closely monitor the lever ratio, as any sudden change could cause volatility and unexpected liquidations.
ETH market performance
At the time of writing this article, the ETH is negotiated at $ 3,282, down 0.1 % in the last 24 hours. It is interesting to note that despite the mediocre performance of the ETH, the daily volume of the exchanges of the assets during last week was rather positive.
Last Wednesday, the volume of ETH exchanges was less than $ 20 billion, but from today, the volume of Ethereum’s daily exchanges exceeds $ 24 billion. This is a fairly opposite trend, especially if it is compared to the performance of the ETH market over the same period.
According to Javon Marks, a renowned crypto analyst on X, Ethereum seems to be on the point of a significant rally at $ 12,000 due to a similar performance at the FIB level as in a previous bull cycle.
ETH (Ethereum), with a performance similar to the FIB level of 1.618 as in the last Haussier cycle, could experience an increase of almost +240 % from here until the levels of $ 11,865.6!
A 5-digit ETH is perhaps on the way and under development, which can help many Altcoins to embark on major races.
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-Javon
Brands (@javontm1) December 29, 2024
Star image created with Dall-E, tradingView graphic
