Hinging: Ethereum ETH Price Headed Above $5K to Test Past ATH
Ethereum made a decisive push this week at the psychologically critical entry point of $3,000 as a combination of bullish factors pushed its parent token ETH higher. However, the path to new all-time highs won't be easy, with recent strengthening indicators strengthening.
TLDR
Ethereum Ether (ETH) price has broken out of an ascending triangle on the weekly chart per Kraken OTC Analysis, with a new all-time high near $5,200 locking in the coins as ETH supply decreases. ETH decisively broke through $3,000 resistance as Bitcoin recovered to $52k after high volatility awaiting Ethereum upgrades like Shanghai. Spot ETH ETF hype and on-chain metrics are fueling a rally, while leveraged pressures remain at ETH's local highs as currency stocks and whale trades increase, suggesting it could strengthen. Small improvements from planned payments serve as long-term incentives
A key driver of momentum building is ETH's clean breakout from an ascending triangle formation on the higher timeframe charts, according to analysis from Kraken OTC Desk. Their technical take points to the last measured move target at $5,200 – a new record high. Several signs indicate that ETH will strengthen the base higher for the next leg.
The network's transition to proof-of-stake and associated ETH locks has reduced the active coin supply since last September's merger event. Low inflation combines with high activity for Ethereum Layer 2 volume solutions to limit sell-side forces.
Recent updates, such as June's Shanghai hard fork, should increase efficiency and user growth with expected fee reductions. This prospect and speculation surrounding the approval of the long-awaited ETH exchange-traded fund (ETF) has rekindled buyer guilt.
In the short term, however, there were signs of violence on the way to the high altitudes. After passing $3k, ETH saw a run of buyers' positions around $8.5 million, hinting at the uncertainty surrounding recent highs.
On-chain data also shows an increase in Ether currency reserves and a doubling of large transactions. If heavyweight traders sense that momentum is slowing, they may take price action back and forth.
For now, analysts are divided on how long Ethereum's price run can last before taking a breather. More skeptical firms like JPMorgan point to obstacles that could still stand in the way of an ETF green light. But other experts are looking at a $4K lineup if such a product gets SEC approval.
These differing views highlight the precarious balance ETH finds itself in, unlike Bitcoin's own tug of war around the $50K threshold. Several weeks of cutting may have generated excessive heat while building the foundation for the next high pressure.
Ether looks set to follow a similar script as the short-term technical oscillators restart and shake off the less committed bulls. But ultimately the tailwinds of network growth will have to overcome any consolidation to pave the way for a new all-time high of attacks in 2024.
