Ethereum ETH Price: 90% Profitability of ETH Approaching $4,000 in Amazing Distance

Ethereum continued its red-hot streak this week, surging 6% above $3,700 to reach its highest level since early 2022. Market revival.

TLDR

Ethereum price rises above $3,500 resistance, creates a new multi-month high of $3,715 ETH, following Bitcoin's break above $68,000, show strong momentum if price could rise above $4,076, overbought signals on RSI and Differences in depression suggest risks of change and adjustment.

Continuing its downward spiral, Ethereum quickly pierced the $3,700 mark to post a new multi-month high at $3,715 in weekend trading. Holding above key support at previous highs around $3,550 adds further credence to a positive market structure.

In lockstep with its big brother Bitcoin, which has reportedly exploded to $68,000 on its own, ETH posted a series of record lows and highs to revive technical analysts' hopes of a push to record highs. The next resistance group between $3,780 and $3,850 will now create an immediate battlefield for a higher leg.

Overcoming those limits opens the door for a full-body assault on the critical psychological mark around $4,000. A daily price level confirmed above it indicates a return to the price level confirmed at the end of 2021.

As market participants loom behind Ethereum's upgrade roadmap, as the release of Denko, on-chain data points show bulls' firm belief in the road ahead. Although prices have more than doubled since the 2022 low, there are no signs of much profit-taking among retail or whale groups.

According to monitoring firm IntoTheBlock, the 3.62 million ETH price could stand to move roughly $13 billion into profitability if those coins can top the $4,076 average cost they have achieved. Such a development would put more than 90% of Ethereum's supply in cash for the first time since November 2021.

Ethereum's largest holding bracket, entities that control between 100 and 100,000 coins, have similarly stood firm in recent volatility. Exchange rates are also declining as there is little evidence of higher selling pressures during improving price conditions.

However, the bulls are still far from being out of the woods. Weekly candles reflect overbought readings on the relative strength index for the first time since the May 2022 temporary peak, although a consolidation move could last for weeks before the momentum dissipates.

Shorter time frames, such as the 4-hour chart, show divergence between recent swing highs, indicating underlying weakness. A failure to retrace $3,800 raises the risk of a deep retracement, with $3,300 representing the first backstop ahead of primary support at $3,000.

All told, investors are engaged in a spirited struggle to determine Ethereum's short-term fate at key recovery points.

If the whales continue to hold on to the $3,500 floor, the path of least resistance will clearly lead to another inevitable run at $4,000.