Ether is facing major resistance at 3,400 USD with over 1 billion USD in leveraged shorts poised for liquidation. Since falling below 4,000 USD on December 16, 2024, Ethereum’s price has dropped by more than 20%.
Aurelie Barthere from Nansen stresses the necessity of enhanced blockchain activity and collaboration with different sectors to restore investor confidence in Ethereum. The potential involvement of public and private entities, especially in the US, is seen as essential.
Despite a surge in Ether options trading, analysts indicate that Ethereum needs to reclaim the 3,400 USD mark to spur a rally toward its previous highs. Observers anticipate a rebound in February, facilitated by institutional buying.