Ethereumโs Path to $5,000 Becomes Clear as Resistance Weakens
Ethereum has been experiencing strong bullish momentum and is currently aiming to surpass the $4,000 price level. Crypto analyst Ali Martinez predicts that this upward trend could continue, potentially pushing Ethereumโs price to $5,000 in the near future. Martinez cites data from IntoTheBlock, which indicates that Ethereum still has room to grow before reaching this milestone. However, there is a minor resistance zone between $4,522 and $4,646 that needs to be overcome first.
Building Momentum and Reaching New Highs
Ethereum has been steadily gaining momentum over the past few weeks, along with the rest of the crypto market. The price of Ethereum has surged by 53% in the last month alone, prompting investors to speculate on how high it can go and if it can break its previous all-time high.
Resistance Thinning as Ethereum Eyes $5,000
Ali Martinez took to social media to share his belief that Ethereumโs path to $5,000 is becoming clearer as resistance levels diminish. However, there is still a significant hurdle at the $4,522-$4,646 range. This range is held by 600,000 addresses containing 1.63 million ETH. Despite this obstacle, Martinez remains confident that Ethereum will eventually reach the $5,000 mark; the only question is when.
#Ethereum path to $5,000 looks increasingly clear, as resistance thins. The key hurdle? A supply zone at $4,522-$4,646, where 600,000 addresses hold 1.63 million $ETH. Itโs not a matter of if, but when! pic.twitter.com/LMvw3kjrEW
โ Ali (@ali_charts) March 11, 2024
In/Out of the Money Around Price Metric
Martinez based his prediction on IntoTheBlockโs โIn/Out of the Money Around Priceโ metric. This metric tracks the number of holders who are making a profit at the current price. Interestingly, the data shows that 7.64 million ETH, which represents 75.95% of the volume bought between $3,428 and $4,646, are currently profitable.
Current Price Action and Support Levels
At the time of writing, Ethereum is trading at $4,058 after experiencing a minor correction from its recent two-year high of $4,084. To continue its bullish trend, Ethereum needs to maintain support around the $3,950 level. However, if it breaks below $3,920, a deeper correction to $3,800 could be possible.
Dencun Upgrade and Gas Fees
The increased activity on layer-2 networks has led to soaring gas fees for Ethereum. To address this issue, developers are preparing for the Dencun upgrade, which aims to reduce fees and improve efficiency. This upgrade marks the first change to Ethereumโs blockchain code in over a year and is expected to usher in a new era of lower transaction costs.
Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding.