Ethereum Poised for December Surge After Reclaiming Key $3,500 Support
Ethereum (ETH) is at a pivotal point, having successfully retested the crucial $3,500 mark as support for the first time in a week. This move follows a period of market recovery and has ignited discussions among analysts regarding the potential for a significant year-end rally for the King of Altcoins. While some foresee a delayed ascent, others point to historical precedents suggesting a robust breakout is on the horizon.
ETH's Current Trajectory and Market Dynamics
Following a recent market shakeout that saw Ethereum briefly touch a four-month low of $3,057, the cryptocurrency has largely traded within the $3,100-$3,500 range. However, a notable rebound over the past weekend pushed ETH past its $3,400 resistance, soaring approximately 7% to the $3,650 level before stabilizing around $3,500-$3,550 as the new week commenced. Analyst Daancrypto Trades highlighted these current levels as critical for short-term stability, suggesting that a successful hold could enable bulls to address market inefficiencies. Conversely, Ali Martinez identified a significant resistance barrier at $3,700, noting that over 869,000 ETH were accumulated around this price point by whales. This resistance is further complicated by recent whale activity, where 23 of the largest Ethereum holders either sold or redistributed more than 10,000 ETH each between November 4 and 8. Despite this selling pressure, large-scale investors like BitMine's CEO, Tom Lee, viewed the recent dip as an "attractive opportunity." BitMine notably acquired an additional 110,288 ETH, worth $400 million, last week, bringing their total holdings to 3.5 million tokens, representing 2.9% of ETH's total supply.
Analyst Forecasts: Consolidation or Impending Breakout?
The path forward for Ethereum remains a subject of varying expert opinions. Ted Pillows suggested that ETH's anticipated Q4 rally might be delayed, citing a lack of correlation between Ethereum and the M2 money supply—a phenomenon often observed when US liquidity growth is hampered. Pillows projects that Ethereum could consolidate for the remainder of November before a potential "take-off in Dec 2025/Jan 2026." However, other analysts offer a more optimistic near-term outlook. Crypto Wolf anticipates ETH printing a "clear higher low" near $3,400-$3,500 this month, a necessary precursor before targeting new all-time highs in December. The $3,100 level is considered a crucial support zone; holding it could allow ETH to establish a base for retesting recent highs, while a failure to hold could signal the onset of a bear market. Adding to the bullish sentiment, analyst Cas Abbé drew parallels between current price action and Ethereum's Q2 performance, where a brief dip below a multi-month consolidation was followed by a 100% rally to new highs. Should history repeat, Ethereum could be gearing up to retest the $3,700-$3,800 resistance and potentially achieve a massive rally before the year concludes.
