Efforts to break through the $4k barrier have been ongoing for Ethereum [ETH], with consistent resistance encountered near that level.
Recent analysis, however, indicates a clear pathway for ETH to reach new all-time highs. As a result, an investigation by CryptoCrypto was conducted to validate this perspective.
Ethereum’s Positive Trajectory
ETH saw a substantial 7% price increase last week, propelling its value close to $4k. Presently, ETH is being traded at $3.05k, boasting a market capitalization exceeding $476 billion.
Famed crypto analyst Ali Martinez recently shared a tweet suggesting minimal barriers for ETH in achieving new record highs, with a slight resistance anticipated around $4,540.
As long as the demand zone at $3,560 holds, the prevailing conditions appear favorable for bullish movements.
Prospects of ETH Touching $4.5k Soon
In light of Martinez’s remarks on the likelihood of ETH hitting $4.5k, CryptoCrypto delved into the token’s on-chain metrics to assess the short-term possibilities.
The Pi Cycle Top indicator for ETH demonstrated strong positioning between the market’s top and bottom. According to this metric, ETH’s potential market top could be around $5.9k.
Based on these metrics, the forecast of ETH reaching $4.5k in the near future seems plausible.
Analysis from CryptoQuant indicated an uptick in buying pressure for the token, evident from the decline in ETH’s exchange reserves.
Moreover, Ethereum’s Coinbase premium signaled positive buying sentiment among US investors. Yet, some metrics were bearish in nature.
For instance, ETH’s taker buy/sell ratio shifted to the red zone, indicating prevailing selling sentiment in the derivatives market, where more sell orders were being fulfilled by takers.
Add to this, ETH’s Net Unrealized Profit/Loss (NUPL) had entered the “belief” phase, a factor historically followed by price corrections.
If past patterns persist, ETH might face challenges surpassing the $4k mark in the short run.
Warnings of trouble loom for ETH, with the Relative Strength Index (RSI) for the token currently situated in the overbought region.
This situation might lead investors to consider selling off their assets, potentially resulting in a decline in ETH’s value in the forthcoming days.
Nevertheless, the MA Cross indicator offered support for the bulls, showcasing a robust position where the 9-day MA stood notably above the 21-day MA.