Ethereum [ETH] is on the verge of confronting a significant barrier following its achievement of surpassing the $4,000 level.
The attention on Ethereum has heightened as it moves towards a crucial resistance point post breaching the $4,000 mark.
During the previous two bullish cycles, Ethereum witnessed explosive price spikes as long-term investors shifted into a phase of heightened “desire”—a period characterized by soaring market confidence and increased profit-taking activities.
Nonetheless, analyzing the on-chain data of the altcoin suggests that Ethereum holders are presently in the initial stages of the “faith phase,” hinting at a potential upcoming breakout in the market.
The faith phase signifies a growing belief among long-term stakeholders when prices stabilize and display indications of positive momentum.
Traditionally, this phase preludes the desire phase, where aggressive purchasing and upward price movements propel Ethereum to unprecedented levels. This early phase offers an ideal window for market entry before the next significant price surge.
What Can Ethereum’s Realized Price Ranges Predict?
The upper band of Ethereum’s realized price serves as a crucial indicator of market dynamics. Currently standing at $5,200, it marked the peak of Ethereum’s bullish run in 2021.
The escalating demand for Ethereum, along with its expanding adoption rate, indicates a potential surge in this upper boundary.
If fresh buyers continue to enter the market, Ethereum might surpass the $5,000 threshold in the forthcoming months. This aligns with the faith phase where momentum is steadily gaining traction.
Ethereum Whales Are Taking Action
Ethereum whales are actively engaging in significant transactions. Over the past 24 hours, substantial transactions have surged by 160%, as reported by IntoTheBlock.
The involvement of large whales often translates into robust market movements, as these significant players accumulate assets during consolidation periods to gear up for the next significant development.
This surge in whale activity resonates with the faith phase, indicating that Ethereum’s major players are strategically positioning themselves for a potential breakout.
Bullish Flag Pattern Indicates the Path Forward
Ethereum’s price movement is shaping a bullish flag pattern, a reliable indicator of potential upward momentum. ETH prices are currently testing a critical $4,000 resistance level that has previously been rejected twice during the last rally.
A breakthrough above this level could trigger a rally, propelling Ethereum’s price closer to new peaks.
Source: TradingView
Ethereum is poised at the onset of a potentially explosive move. Factors such as long-term investors, whale activities, and bullish patterns point towards a probable rally in the near future.
Presently, all focus is on pivotal resistance levels and the evolution of the faith phase.