Ethereum (ETH) Price Prediction: ETH Reached a Multi-Month High, Following Bitcoin's Rise

Ethereum has become deflationary again, with more ETH being burned than issued recently. Data from Ultrasound.money shows that the supply of Ethereum is decreasing

Ethereum price analysis shows a downtrend with crucial support and resistance levels.

After Bitcoin's surge, Ethereum also reached a multi-month high, peaking at $3,446. However, it faced resistance and is now trading at around $3,183.

Despite the setback, Ethereum's Deflationary Trend continues, with more ETH being burned than issued recently. According to Ultrasound.money, the supply of Ethereum is decreasing as network activity increases, especially after recent market movements.

As of November 12, 2024, Ethereum's total supply is about 120.42 million ETH, which is slightly down from previous days, showing ongoing deflationary pressure.

This reduction in supply is likely to increase Ethereum's scarcity, which could create positive momentum in the market. As rising transaction fees lead to more ETH being burned due to higher user activity, investors might expect the price to go up.

Moreover, there is growing interest from institutional investors in Ethereum, with recent inflows into Ethereum ETFs reaching $649.3 million in just five days.

This suggests that as more institutions see ETH as a valuable investment, the combination of decreasing supply and increasing interest could lead to higher prices.

Now let's perform Ethereum technical analysis on a 4-hour chart to identify potential trading opportunities.

Bullish momentum may be achievable if Ethereum maintains above $3,000. The key near-term resistance is at $3,000, with significant upward movement targeting $3,200 or even $3,400. A robust bullish trend will only materialize above $3,400.

Conversely, immediate support is around $2,770. A fall below this threshold will confirm continued bearish momentum, potentially leading to price drops to $2,500 or $2,300. A breach below $2,000 could see Ethereum plummet to $1,800.

Based on the analysis above, a potential trading strategy for Ethereum is to buy on dips near $3000, with a stop loss set around $2770 and a target price of $4000.