The price of Ethereum has increased by 6.7% in the last 24 hours and is trading close to $3,320. The movement follows a confirmed breakout structure on December 3rd, which still points to $3,710.
However, mixed signals now indicate that the appreciation may take longer.
The breakout structure remains while a bullish crossover approaches
The price of Ethereum continues within the same breakout pattern of an 'inverted head and shoulders' formed at the end of November. The movement remained valid after December 3rd, as the support of the right shoulder at $2,710 was respected. The structure only loses strength if ETH falls below this level.
An important trigger now is the bullish crossover forming between the 20-period exponential moving average (EMA) and the 50-period EMA. The EMA, or exponential moving average, gives greater weight to more recent candles.
Normally, a bullish crossover signals that buyers are gaining strength and that the trend may follow in the same direction. This factor can drive the price of ETH towards the projected target of US$ 3,710.
However, this crossover will only solidify if there is no selling pressure. An on-chain data point indicates why caution remains necessary.
Rising unrealized profits create an opportunity for profit-taking
The Net Unrealized Profit/Loss (NUPL) of Ethereum measures the 'unrealized profit' held by all ETH wallets. When NUPL advances, more investors have incentives to sell, as they accumulate gains that are not yet realized.
The NUPL of ETH rose to 0.296, reaching the range of 'Optimism–Anxiety'. This is the highest level since early November.
The last time NUPL reached a similar level — on December 3 — ETH fell about 5.2% in two days, with investors taking profits.
A similar scenario is occurring now. Profitability is rising while ETH remains close to a resistance. This increases the possibility of some investors selling even before the bullish crossover is confirmed. If this happens, the crossover may fail and momentum may weaken, even though the breakout structure remains intact. This dynamic explains the possible delay in the movement.
Key price levels of Ethereum: what paves the way for US$ 3,710 and what could prevent it
If the bullish crossover is confirmed and NUPL pressure remains contained, the price of Ethereum may advance without major obstacles:
The first signal will be a closure of 12 hours above US$ 3,390
The next resistance appears at US$ 3,570
Surpassing US$ 3,570, there will be room to seek US$ 3,710, a projection of 20% from the breakout point.
If sales increase, the structure loses strength. ETH remains valid above US$ 2,710, but if it falls below US$ 2,610, the pattern will be invalidated and there may be a more intense correction.
At the moment, ETH is caught between two factors: the bullish crossover, which could take it to US$ 3,710, and the increase in unrealized profits, which could delay the movement. The next sessions will be decisive in directing the trend.
The article 'Can Ethereum's Price Reach US$ 3,700? Metric Indicates that Expectation Should Be Higher' was first seen on BeInCrypto Brazil.
