Ethereum Price Prediction: Bullish $34 Billion Signal Appears after $4k Rally 

Ethereum (ETH) price briefly grazed the $4,000 mark on March 8 2024, bringing its weekly gains to 20%. On-chain analysis shows how a spike in Ethereum trading volume has triggered the latest upswing.

With existing holders pining for more gains can Ethereum price push for the next milestone target at $4,500? 

Traders Reluctant to Sell after Pullback from $4,000

After a relentless 51% in February 2024, ETH bulls made a positive start to March. On March 8, Ethereum price crossed the $4,000 milestone for the first time in 3-years, capping 20% gains in the first week of March alone. 

As widely expected, a mild sell-off at the $4,000 resistance saw ETH price retraced 3% towards $3,900 within the next 24 hours, trading at $3,930 at press time on March 9.  

But interestingly, on-chain data trends show that the majority of current ETH holders have reacted with a bullish disposition amid the price retracement that has followed the $4,000 rally.

Indicatively, Santiment chart below shows that ETH trading volume, which had risen to a 3-year peak of $48  billion on March 5 has now dipped to $14.1 billion on March 9

Effectively, the chart above shows that ETH investors have now cut down trading by $34 billion, a whopping 70% decline compared to the recent trading peak on March 5. 

As things stand, ETH trading volume has now dropped by 70%, while Ethereum price has only declined by 3% after hitting the $4,000 milestone.

When trading volume reduces faster than price declines could be an indicator that existing Ethereum investors are cutting back on trading at the current prices, instead holding out for another swift rebound phase  above $4,000 in the coming week.  

Additionally, key fundamental bullish catalysts, such as the positive sentiment surrounding the upcoming Dencun upgrade, and progress of ETH ETF filings  also further reinforce the optimistic outlook for an imminent Ethereum price rebound.

ETH Price Prediction: Bulls to Defend $3,850 Fiercely 

The curtailed selling pressure observed among Ethereum investors after breaking the $4,000 barrier puts ETH in prime position to avoid a major downswing below $3,750. 

The 7-day Exponential Moving Average (EMA) also confirms this outlook. It shows that traders who acquired ETH in the past week paid an average price of $3,740. 

With them still holding approximately 20% profits, the majority of them could hold out for more gains as the broader crypto markets remain dominantly bullish. 

A successful consolidation above that key $3,750 area could see Ethereum price advance by another 15% above the next milestone target at $4,500.

In the event of a major bearish swing in market sentiment, ETH bulls can rely on the 50-day EMA of $2,986 for longer-term support.

However, this currently looks unlikely, with ETH traders reluctant to sell and cutting down on trading volumes by over $34 billion.