Ethereum (ETH) gap to $4k: all-time high in sight
Ethereum, the second-largest by market capitalization, has been on a tear in recent weeks, with its price surging more than 27 percent and breaking out of a falling wedge chart formation.
This crash has caught the attention of analysts and investors, as it could reverse the previous downtrend and set new all-time highs for the digital asset.
TLDR
Ethereum price is up more than 27% in the past week, breaking out of a falling wedge chart formation, indicating a possible reversal of the previous downtrend. The breakout could point to a rally to new all-time highs, with some analysts predicting that ETH could reach $4,500 before trading ETH ETFs in the first place. Ethereum faces strong resistance at the $4,000 psychological mark, but a weekly close above $3,956 could confirm continued bullish momentum. Ethereum network activity has increased over the past seven days, with a 72.45% increase in ETH token transfers and a 3.58% increase in active addresses, indicating growing participation. On-chain indicators and technical analysis reinforce the possibility of an extended rally above the $4,000 mark in Ethereum with achievable targets of $4,698 and $5,841 based on Fibonacci levels.
The bullishness around Ethereum has been fueled by several factors, including the first place ETH exchange-traded funds (ETFs) and the growing network activity on the Ethereum blockchain.
Some analysts, such as Arthur Cheng, founder and CEO of crypto-focused investment firm Defiance Capital, believe that the price of Ethereum could reach $4,500 before the first spot ETH ETFs start trading.
imo to trade 4.5k ETF before the spot.
— Arthur (@Arthur_0x) May 26, 2024
Ethereum faces a major obstacle at the $4,000 psychological mark, which has served as a strong resistance level in the past. According to data from CoinGlass, a sustained move above this level could create a wave of short spot liquidity of more than $433 million across all exchanges.
In order to confirm the continued bullish movement, Ethereum needs to close the week above $3,956, as noted by renowned crypto analyst Rect Capital.
$ETH
Ethereum only needs to close above $3956 (green) every week to move to $4000+ territory.
Currently, #ETH is building downward momentum.
Can Ethereum make it before the new weekly close? #Crypto #Ethereum pic.twitter.com/Qzd2a62es7
— Rekt Capital (@rektcapital) May 26, 2024
Optimism surrounding the price of Ethereum is not only based on technical analysis and market sentiment, but also on the fundamentals of the network.
Over the past seven days, Ethereum network activity has seen an impressive growth, with a 72.45% increase in ETH token transfers and a 3.58% increase in active addresses.
This growth in network participation shows that there is a strong demand for Ethereum and its ecosystem, which can further support the continued price rally.
On-chain indicators suggest that the bulls are in control, with open demand in Ethereum rising to $13.17 billion, a 6.84% intraday increase and a massive 51.06% increase over the past seven days.
The positive funding ratio of 0.01641022 indicates that bulls are willing to pay a premium to protect their long positions, further strengthening the bullish outlook for Ethereum.
As Ethereum continues its upward trajectory, analysts are looking at potential targets based on Fibonacci retracements. ETH's next target could be the $4,698 level, and if any Ether ETF details are released this week, a bull run to the 1.618 Fibonacci level at $5,841 is possible.
Although the crypto market remains volatile and unpredictable, the current momentum behind Ethereum suggests that the digital asset may be on a high.
As institutional demand continues to grow and the Ethereum network evolves with recent updates, such as the much-anticipated Ethereum 2.0, the cryptocurrency's long-term prospects look promising.
