{"id":666228,"date":"2024-12-22T16:30:32","date_gmt":"2024-12-22T16:30:32","guid":{"rendered":"https:\/\/uniquehot.com\/?p=666228"},"modified":"2024-12-22T09:06:41","modified_gmt":"2024-12-22T09:06:41","slug":"ethereum-dips-below-3100-new-all-time-high-before-2025","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/analysis\/ethereum-dips-below-3100-new-all-time-high-before-2025\/","title":{"rendered":"Ethereum Dips Below $3,100 – New All-Time High Possible Before 2025?"},"content":{"rendered":"

Ethereum (ETH), the second-largest cryptocurrency<\/a> by market capitalization, recently experienced a significant price correction, dropping below $3,100 for the first time in 29 days. This marks a notable shift from its peak performance in December, when it reached this year’s high of $4,106 on December 16. However, the all-time high for ETH, set at $4,877 on November 8, 2021, remains unbroken. Since reaching that high, Ethereum has been forming lower highs and lower lows, indicating bearish momentum in the market.<\/span><\/p>\n

Ethereum Market Sentiment And Support Levels<\/b><\/h2>\n

The year 2024 has been tumultuous for Ethereum, with a blend of bullish catalysts and market downturns. Early in the year, Ethereum saw a 47% increase, although it lagged behind Bitcoin’s substantial gains. A key driver of optimism was the SEC’s approval<\/a> of Ethereum spot ETFs in May, which not only attracted institutional investors but also contributed to a 24.7% return for that month. However, geopolitical tensions and broader market dynamics, including the Bitcoin halving, led to volatile periods, with April witnessing a 17.2% decline in ETH’s value.<\/span><\/p>\n

Despite these fluctuations, Ethereum has maintained its stronghold in the decentralized finance (DeFi) space, with its Total Value Locked approaching $80 billion, underscoring its fundamental strength. However, the second quarter was less favorable, with ETH posting a -5.08% quarterly return due to external factors like the Middle East crisis.<\/span><\/p>\n

Related Reading: Sentiment For Ethereum Hits 1-year Low, Analyst Says A Massive Run Is Coming<\/a><\/div>\n

As December 2024 unfolds, Ethereum was trading at around $3,648, showing signs of recovery in the last month of the year and outperforming other major cryptocurrencies like Bitcoin and Solana. However, the recent dip below $3,100 has sparked discussions about the potential for further declines or a swift recovery to new highs.<\/span><\/p>\n

Market sentiment, as indicated by the Fear and Greed<\/a> Index at 57 (greed), suggests that retail investors see the current dip as a buying opportunity rather than a reason for panic selling. This sentiment is crucial as Ethereum navigates through its support levels, with the immediate one at $2,900 being a focal point. If Bitcoin experiences a significant drop to around $90,000, it could further influence ETH’s price, potentially pushing it towards its next significant support at $2,900.<\/span><\/p>\n

Related Reading: 7.8M Ethereum Leaves Binance In Two Months\u2014What Does This Mean for ETH?<\/a><\/div>\n

Can Ethereum Hit A New All-Time High Before 2025?<\/b><\/h3>\n

Looking towards the possibility of hitting a new all-time high before 2025, several factors come into play:<\/span><\/p>\n