Ethereum (ETH) price is showing a strong weekly performance as it tests key levels

TLDR

Ethereum is hovering near the $4,000 resistance level with a strong weekly close. ETH has gained 62% in the past year, lagging behind other cryptocurrencies. Analyst Pentoshi said ETH had its highest weekly close of the year and for the new ATH Crypto analyst, CryptoPoseidon projects it could rise to $6,000. ETH fundamentals based on $11,400 Fibonacci levels show on-chain activity and increasing active addresses. Close line up

As the price of Ethereum tested the resistance level of $4,000, it reached a critical level supported by trading volume and activity on the chain. The cryptocurrency's recent price movement has attracted attention from market participants and analysts who closely monitor technical indicators and market metrics.

Data from major cryptocurrency exchanges shows Ethereum trading at $3,847 as of the latest market correction, representing a 3.9% decline over the past 24 hours. Although this was a short-term reversal, the cryptocurrency maintained its position near the important $4,000 price level.

Last year, Ethereum recorded a 62% price increase according to CoinGecko data. This performance, while positive, did not match the gains seen at the same time in some other digital assets, including Bitcoin, Solana and XRP.

Market analyst Pentoshi recently highlighted the importance of Ethereum's structural changes to the market. Through the social networking platform X, Pentoshi pointed out that Ethereum has achieved the highest weekly close of the year, which indicates the momentum in the current market cycle.

Just like this with BTC, $ETH is experiencing structural changes as well as the beginning of consistent and large ETF flows.

He just placed HH, and had the highest weekly close of the year. There is not much resistance from here to Atty which should act like a magnet. Above… pic.twitter.com/FFZSVxCTsB

— 🐧 Pentosh (@Pentosh1) December 9, 2024

The launch of spot Ethereum exchange-traded funds (ETFs) has introduced a new dynamic to the market. These investment vehicles continue to attract significant inflows, indicating growing institutional interest in cryptocurrency.

Technical analysis from crypto analyst CryptoPoseidon suggests several price targets based on Fibonacci retracement levels. According to the analysis, these levels could be $6,000 at 1.272 extension, $7,400 at 1.618 extension, and $11,400 at 2.618 extension.

$ETH is about to break above the 4-year 1,460-day range.

Far higher, far beyond your wildest dreams. pic.twitter.com/BjPoUEQ3RD

— Poseidon (@CryptoPoseidon) December 8, 2024

Short-term trading patterns have attracted the attention of market observers. Analyst Satoshi Flipper has identified an upward channel formation on the 4-hour chart, suggesting a move towards $4,400 if the current support levels hold.

On-chain metrics provide additional context for price action. During the recent price rally, there was an increase in both active addresses and high-value transactions, indicating broad market participation.

The $4,000 price level represents a psychological barrier that attracts trading activity from historically high levels. Market data shows concentrated order books around this price point, indicating that traders are on the lookout for potential price action.

As the price approaches this key level, trading volume on major exchanges has risen. This increased activity indicates particularly high market demand and may precede price movement in either direction.

Recent market data shows that spot trading volumes have risen on many exchanges. This measure serves as an indicator of true market demand rather than the more commonly used price action.

Technical indicators on the daily and weekly time frames show the building momentum. The weekly chart, in particular, shows a series of highs and lows, which is usually associated with continued price action.

Order flow analysis shows accumulation at current price levels. This pattern indicates that market participants are building positions despite short-term price fluctuations.

Market depth data indicates improving liquidity conditions around current price levels. This measure is important to support stable price movements and reduce the impact of large transactions.

The latest market data shows that Ethereum price continues to test the $4,000 level while maintaining support above $3,800 in active trading on major exchanges.