Ethereum's price fell below $4,000 on December 17 and has struggled to regain that level since. A recent 5% bump suggests a potential change in sentiment, but specific factors need to align for Ethereum to hit $4,000 again.
The In/Out of Money Around Price (IOMAP) reveals strong support at $3,352, where 3.34 million addresses hold 3.18 million ETH in profit. Resistance looms at $3,508, with 3.90 million addresses holding 1.62 million ETH.
If buying pressure increases, Ethereum might surpass this level. Coin holding time is also rising, suggesting decreased selling tendencies. This supports a bullish outlook, potentially pushing Ethereum past the resistance.
Technically, Ethereum has moved above the Ichimoku Cloud, indicating strong support. If the price remains above the cloud, it could reach $4,109, and possibly $4,500 with continued bullish sentiment.
However, if bearish pressure increases, Ethereum's price might drop to $3,111 or lower if selling intensifies. The outlook is optimistic but hinges on breaking key resistance levels and sustaining support.