ethereum price has stalled at the $4,000 resistance level, but on-chain metrics and other external factors point to further gains.
ethereum (eth), the second-largest cryptocurrency by market cap, was trading at $4,008. But the momentum did not continue as it has faced resistance for the last three consecutive weeks.
Still, eth has positive catalysts that could drive its price up in the short term. The first major catalyst is that bitcoin (btc) has continued to rise and hit an all-time high this week. Altcoins like Ether usually follow the price of bitcoin.
ethereum spot ETFs are also seeing strong inflows, a trend that may continue in the coming months. Their cumulative revenues have grown to more than $2.3 billion, with Grayscale and Blackrock holding the largest market share. Has had entries in the last 17 consecutive days.
On-chain metrics show that the number of active ethereum addresses has remained stable at just under 600,000. Total addresses have increased to more than 123 million, according to <a target="_blank" href="https://app.intotheblock.com/coin/eth/deep-dive?group=network&chart=addressStats” target=”_blank” rel=”nofollow”>on the block.
More data, as shown below, shows that ethereum whales continue to hold their coins. There are 90 accounts with between 100,000 and 1 million eth tokens and 966 of them with between 10,000 and 100,000 coins.
Meanwhile, data shows that Ether is seeing accumulation below the $4,000 metric. 7.2 million coins were purchased slightly below that level.
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etherscan data shows that an ethereum whale moved 16,000 eth tokens worth $64 million from Binance to a custodial wallet. In recent weeks there have been more transactions of this type.
Meanwhile, ethereum's decentralized exchange ecosystem is doing well, as its total value locked increased 36% to $79 billion. Their DeFi protocols have more asses than the next ten chains combined.
ethereum price could rise soon
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The weekly chart shows that the price of eth has been in a strong uptrend in recent weeks. It has found a strong barrier at $4,000, a level that it has not managed to overcome since March.
The main risk is that a triple top pattern has formed, a popular bearish sign in the market. This pattern has formed slightly above the 23.6% Fibonacci retracement level.
ethereum has remained above the 50- and 100-week moving averages. It is also between the midline and the first point of resistance of Andrew's pitchfork tool.
Therefore, a break above the triple high level will signal further gains, possibly to the all-time high of $4,877. A move above that will lead to further gains up to $5,000.
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