Ethereum Price Hits Bump, But Here’s Why the Uptrend Will Continue

Summary:
• Ethereum price declined for the first time in seven days, signifying exhaustion, but key metrics and sentiment won't allow an extended dip.

Ethereum price snapped a six-day winning streak on Monday, going down by -0.8 percent to trade at $3,156 at the time of writing. The second-largest cryptocurrency by market cap has been on an ascending trajectory, and has gained more than 28 percent in the last week, building a strong traction for further upside.

A case for further Ethereum price upside

The decline on Monday is likely temporary, as the crypto market remains upbeat over its future after Donald Trump won the 2024 US presidential elections. As the crypto market has been upbeat even in the absence of definitive pronouncements by Trump after his win, we are likely to see a continuation of the uptrend once he makes those moves. A central focus is the administration of the Securities and Exchange Commission (SEC), the market regulator where changes could inject substantial impetus into crypto prices.

On the downside, however, the current market rally has seen multiple crypto assets, including bellwether Bitcoin and Ethereum, enter the overbought territory. That said, key on-chain data still favour a continuation of the upside. According to IntoTheBlock, 78 percent of ETH holders are “In the Money” , and 74 percent of them have held the coin for more than a year. That is likely to reduce selling pressure going by the current market sentiment.

Meanwhile, the total exchange outlows in the last seven days stand at $386 million as of this writing. That signifies that most traders are not in a hurry to trade their ETH tokens and most likely prefer holding them and waiting for further gains. Furthermore, whale activity has risen significantly in the last seven days, with transactions holding over $100k rising by 7,576.

Ethereum price prediction

Ethereum price pivots at 3,164, and the downtrend will prevail if resistance stays above that level. In that case, the first support is likely to be at 3,142. However, if the sellers extend their control, that could break below that level to test 3,119.

Alternatively, rising above 3,164 will signal control by the buyers, with initial resistance likely to be at 3,195. However, a stronger upward momentum could break above that level and invalidate the downside narrative. In addition, the price rise could extend to test 3,214.