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Ethereum is trying to break the critical $4,000 level as it approaches an all-time high. The market has shown skepticism about Ethereum’s performance this cycle, with some analysts predicting it will underperform compared to previous bull phases. Despite this uncertainty, Ethereum has proven its resilience, consistently finding demand at key support levels and maintaining a bullish price structure.
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Adding to the optimism, on-chain data from IntoTheBlock highlights a strong foundation for Ethereum network activity this week. Metrics such as active addresses, transaction volume, and net flows indicate a healthy ecosystem, reinforcing the potential for ETH to continue its upward trajectory. These indicators reveal increased participation and increased confidence among investors, even in light of the prevailing uncertainty in the market.
As Ethereum approaches a critical resistance level, all eyes are on whether it can maintain the momentum and surpass the $4,000 level. If successful, this breakout could ignite bullish sentiment and pave the way for ETH to retest its all-time highs, silencing skeptics in the process. However, failure to clear this hurdle could lead to further consolidation, keeping traders on their toes as they anticipate Ethereum’s next major move.
Strength of Ethereum data signals
The price of Ethereum has been rising steadily in recent weeks, supported by the strong uptrend that began earlier this month. Price momentum is attracting the attention of top analysts and investors, who are closely watching for a breakout above yearly highs as ETH approaches its all-time high (ATH). The anticipation in the market is palpable, with many viewing this as a pivotal moment for Ethereum to consolidate its position in this bull cycle.
Senior analyst Ali Martinez recently On-chain shared metrics from IntoTheBlockrevealing a strong outlook for the Ethereum network this week. Active titles increased by 4.24%, indicating increased engagement and interest among users. Likewise, new addresses rose 2.65%, indicating growing adoption and investor activity. It is worth noting that zero balance addresses decreased by 4.06%, indicating that dormant wallets are coming back to life, and ETH is being reactivated for transactions or investments.
These positive metrics highlight Ethereum’s growing momentum, reinforcing the belief that it is poised for a significant price move. If ETH succeeds in breaking its yearly highs, it could lead to a strong rally, possibly setting new records. However, failure to maintain bullish momentum could see Ethereum pull back to consolidate further before attempting another breakout.
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With its fundamentals strengthening and the market poised for a breakout, Ethereum appears poised to make its next major move. Whether it’s targeting all-time highs or finding support for another push, the coming weeks are likely to be crucial in determining Ethereum’s path for the rest of the bull cycle. As sentiment builds, all eyes remain on Ethereum’s ability to capitalize on its growing momentum.
ETH test supply
Ethereum (ETH) is currently trading at $3,920, showing resilience after several failed attempts to break the critical $4,000 resistance level. This price point remains a psychological and technical barrier for ETH, and crossing it is necessary to confirm the continuation of its uptrend.
Market attention is focused on Ethereum’s ability to reclaim the $4,000 level, which will likely serve as a catalyst for a strong rally towards new yearly highs. However, the inability to break through this resistance decisively has kept ETH in a consolidation phase, leaving some uncertainty about its next move.
If Ethereum fails to maintain its current momentum and crosses $4,000 in the coming sessions, the price may face increased selling pressure. A bounce back towards lower demand levels around $3,500 is likely in such a scenario. This level has previously served as a strong support area, and a retest could provide the basis for another bullish attempt.
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While the market waits for a decisive move, Ethereum remains in a critical situation. Breaking the $4,000 level would reactivate bullish sentiment, while failure to do so could signal further consolidation or correction before the next significant price action unfolds.
Featured image from DALL-E, chart from TradingView