Is Ethereum Price Headed Toward $3,700 Next? One Metric Hints at a Longer Wait

Ethereum value is up 6.7% previously 24 hours and trades close to $3,320. The transfer follows a breakout construction confirmed on December 3, which nonetheless factors towards $3,710.

But combined indicators now recommend the climb could take longer.

Breakout Structure Holds as a Bullish Crossover Approaches

The Ethereum price continues to maneuver inside the similar inverse head-and-shoulders breakout setup that shaped in late November. The transfer stayed legitimate after December 3 as a result of the right-shoulder assist at $2,710 held. The construction weakens provided that ETH drops beneath that stage.

A key set off now’s the bullish crossover forming between the 20-period EMA (Exponential Moving Average) and the 50-period EMA. An EMA, or Exponential Moving Average, tracks value with additional weight on current candles.

A bullish crossover normally hints that patrons are gaining power and momentum could proceed in the identical path. That set off may push the ETH value increased, in direction of the projected goal of $3,710.

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But this crossover will kind provided that sellers don’t step in. One on-chain metric reveals why warning stays.

Rising Paper Profits Create a Profit-Taking Window

Ethereum’s Net Unrealized Profit/Loss (NUPL) measures the “paper revenue” held by all ETH wallets. When NUPL rises, extra holders have a purpose to promote as a result of they sit on bigger unrealized beneficial properties.

ETH’s NUPL has now climbed to 0.296, pushing it into the Optimism–Anxiety zone. This is the very best studying since early November.

The final time NUPL reached a comparable stage — on December 3 — ETH fell about 5.2% inside two days as holders booked income.

The same setup is seen now. Profitability is rising once more whereas ETH sits near resistance. This will increase the prospect that some holders could promote earlier than the bullish crossover finalizes. If that occurs, the crossover could fail, and momentum may pause despite the fact that the breakout construction remains to be intact. That explains the longer wait time.

Key Ethereum Price Levels: What Opens the Path to $3,710 — and What Breaks It

If the bullish crossover completes and NUPL stress stays restricted, the Ethereum value has a clear upward path:

• A 12-hour shut above $3,390 is the primary sign
• The subsequent resistance sits at $3,570
• Clearing $3,570 unlocks the total transfer towards $3,710, the measured 20% projection from the breakout level.

If promoting grows as an alternative, the construction weakens. ETH remains valid above $2,710, however a transfer beneath $2,610 invalidates the setup and factors to a deeper pullback.

For now, ETH sits between two forces: a bullish crossover that might push towards $3,710, and rising paper income that will delay the transfer. The subsequent few periods will resolve which aspect leads.

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