Ethereum has been on a bullish run, with expectations of reaching $5,000 in the near future. The cryptocurrency market analyst, Ali Martinez, has studied data from IntoTheBlock and suggested that Ethereum still has room to grow to hit the $5,000 mark. The current price of Ethereum is hovering above $4,000, showing strong bullish momentum. However, there is a resistance level at $4,522 to $4,646 that may slow down its ascent.
The broader crypto market has been experiencing an increase, leading to new all-time highs for many cryptocurrencies. In the past 30 days alone, Ethereum’s price has surged by 53%, prompting investors to speculate on how high it can go. The ongoing momentum in Ethereum raises questions of whether it can mirror Bitcoin’s trajectory and reach new record highs.
Martinez highlighted the importance of breaking through the resistance zone at $4,522 to $4,646, where a substantial amount of Ethereum is held by a large number of addresses. Despite this hurdle, Martinez remains confident that Ethereum will eventually reach $5,000. The key question is not if it will hit that price point, but rather when it will happen.
Technical Indicators
Using IntoTheBlock’s “In/Out of the Money Around Price” metric, Martinez analyzed the current price level and the number of holders in profit. The metric revealed that a significant portion of Ethereum volume, 7.64 million ETH, is currently profitable, indicating a favorable market sentiment towards higher prices.
At the time of writing, Ethereum is trading at $4,058, experiencing a minor correction from its recent peak of $4,084. A close above $4,175 could pave the way for a swift move towards $4,500 and potentially surpass Ethereum’s previous all-time high of $4,891. The support level at $3,950 is crucial for sustaining the bullish trend, but a break below $3,920 might signal a deeper correction to $3,800.
The surge in blockchain activity on layer-2 networks has led to increased gas fees, prompting developers to prepare for the Dencun upgrade. This upgrade aims to reduce transaction costs on the Ethereum network, marking the first significant code change in over a year. The implementation of the Dencun upgrade could lead to a new era of lower fees and improved user experience on the Ethereum platform.
Ethereum’s price predictions point towards a potential rally to $5,000, driven by bullish market dynamics and technical indicators. While there are resistance levels and potential corrections to watch out for, the overall sentiment remains positive for Ethereum’s future price trajectory. Investors are advised to conduct their own research and consider the risks associated with cryptocurrency investments before making any decisions.