Overcoming the $4k barrier has been a challenging task for Ethereum [ETH] in recent times, facing resistance each time it attempts to breach this threshold.
Nevertheless, a fresh analysis suggests that Ethereum is paving the way towards a potential new all-time high. Consequently, CryptoCrypto conducted an in-depth investigation to verify the accuracy of this projection.
Ethereum Progressing Steadily
Last week, ETH experienced a 7% price surge, bringing its value close to $4k. Currently, ETH is trading at $3.05k with a market capitalization exceeding $476 billion.
Renowned crypto analyst Ali Martinez recently shared on Twitter that there are minimal obstacles hindering ETH from achieving new all-time highs, with a modest resistance zone near $4,540 being the only notable one.
As long as the demand zone at $3,560 remains intact, the odds appear to favor the bullish trend.
Anticipating ETH’s Surge to $4.5k
In light of Martinez’s tweet regarding the potential for ETH to reach $4.5k, CryptoCrypto delved into the token’s on-chain metrics to assess the likelihood of this happening in the near future.
The Pi Cycle Top indicator for ETH signified that the token was trading comfortably between its market highs and lows, with a potential market top at $5.9k.
Given these indicators, it appears plausible for ETH to touch $4.5k in the near term.
Data from CryptoQuant highlighted an increase in buying pressure on the token, reflected in the declining exchange reserves of ETH.
Furthermore, Ethereum’s Coinbase premium exhibited a positive trend, indicating strong buying sentiment among US investors. However, certain metrics painted a bearish picture.
For example, ETH’s taker buy/sell ratio transitioned to the red zone, signaling a prevailing selling sentiment in the derivatives market, with more sell orders being completed by takers.
Moreover, ETH’s Net Unrealized Profit/Loss (NUPL) entered the “belief” phase, a state which historically preceded price corrections.
If history repeats itself, ETH may struggle to surpass the $4k mark in the short run.
Challenges loomed for ETH as its Relative Strength Index (RSI) resided in the overbought territory.
This situation could prompt investors to offload their holdings, potentially exerting downward pressure on ETH’s price in the days to come.
Nevertheless, the MA Cross indicator favored the bulls, with the 9-day MA comfortably surpassing the 21-day MA.