Ethereum (ETH) Poised for a New All-Time High?

Ethereum (ETH) Poised for a New All-Time High?

Ethereum (ETH) is making headlines after an impressive 46% price surge in November, nearly reaching its yearly high. The bullish momentum has continued into December, with ETH breaking out from a long-term descending resistance trendline—a significant development for traders and investors.

Currently, Ethereum is trading within the final horizontal resistance area before its yearly high, prompting the question: Can ETH clear this level, and what’s next if it does? Let’s delve into the details.

Key Technical Milestones

Ethereum’s weekly chart highlights a crucial breakout from a descending resistance trendline that had persisted since March when the price peaked at $4,091. This breakout has propelled ETH toward the $3,900 horizontal resistance zone—the final barrier before its all-time high of $4,951.

In addition to this diagonal breakout, ETH has closed significantly above the critical 0.786 Fibonacci retracement resistance level at $3,900. A decisive close above $4,000 could trigger a sharp and rapid upward move, setting the stage for a potential test of the all-time high.

Market Sentiment and Fundamentals

Market sentiment around Ethereum is overwhelmingly bullish. Key metrics suggest ETH has bottomed against Bitcoin (BTC) and could outperform it in the coming months, echoing patterns observed during previous market cycle bottoms.

Moreover, Ethereum’s supply dynamics are intriguing. While its overall supply has increased since March, there have been periods of deflation, with the most recent starting on December. On top of this, Ethereum ETFs are witnessing robust inflows, with nearly $900 million in cumulative net inflows—a clear sign of growing institutional interest.

Long-Term Outlook: A New All-Time High?

Ethereum’s long-term outlook suggests that a new all-time high may be on the horizon. A breakout above the $4,000 mark would confirm that the price is set for a climb toward uncharted territory. However, in the short term, the price action remains less predictable. A brief dip could occur before Ethereum resumes its upward trajectory.

What’s Next for Ethereum?

If ETH manages to break above $4,000 decisively, it could signal the start of a significant rally. Traders and investors should keep a close eye on key resistance and support levels, as well as macroeconomic factors that could influence the broader cryptocurrency market.

Ethereum’s technical and fundamental indicators align to paint a bullish picture, making it one of the most closely watched assets as we move deeper into December. Will Ethereum reclaim its place in price discovery mode? The next few weeks will be critical in determining its trajectory.