Is Ethereum Price Headed Toward $3,700 Next? One Metric Hints at a Longer Wait
Ethereum's price is up, supported by a bullish breakout structure, but rising paper profits suggest a delay before reaching the $3,700 target.Summary
Ethereum's price has recently increased by 6.7% and is trading near $3,320, maintaining a bullish inverse head-and-shoulders breakout structure confirmed on December 3, which targets $3,710, provided the $2,710 support level holds. A key bullish signal approaching is the crossover between the 20-period and 50-period Exponential Moving Averages (EMAs), which typically indicates strengthening buyer momentum.
However, mixed signals suggest a potential delay. Ethereum's Net Unrealized Profit/Loss (NUPL) metric has risen to 0.296, entering the Optimism–Anxiety zone, indicating that many holders have significant unrealized gains and may be inclined to take profits. This profit-taking window mirrors a similar situation on December 3, which preceded a price drop.
If the bullish crossover completes and profit-taking is limited, ETH needs to close above $3,390, then overcome $3,570 to unlock the full move toward $3,710. Conversely, increased selling pressure could cause the crossover to fail, pausing the momentum despite the intact technical structure, thus explaining the potential for a longer wait.
(Source：BeInCrypto)