This article is also available in Spanish.
ethereum (eth) is making headlines as it moves towards the $4,100 mark, hitting a new yearly high of $4,096. This milestone, just $3 above the previous high set in March, indicates a possible resurgence of the second-largest cryptocurrency by market capitalization. The price action has caught the attention of analysts and investors, particularly as ethereum continues to outperform expectations in a market dominated by volatility and uncertainty.
Related reading
Key IntoTheBlock metrics shared by analyst Ali Martinez shed light on network activity and reveal an increase in large ethereum transactions. Historically, these increases in trading volume have been linked to major price movements, suggesting that ethereum's current bullish trend could have more room to continue. These developments point to growing interest from institutional players and high-net-worth investors, further solidifying ethereum's position as a market leader.
The coming weeks promise to be crucial as ethereum approaches the end of the year. Will it maintain its momentum and close the year with a break above $4,100? Or will he face resistance and retreat? With on-chain activity and market sentiment lining up in ethereum's favor, all eyes are on its next move as traders and investors position themselves for what could be an exciting close for 2024.
ethereum transactions rise with price
ethereum continues to dominate market discussions after hitting new yearly highs on Friday. The cryptocurrency surpassed $4,096, surpassing its previous high set in March. This upward momentum has reignited investor interest, but ethereum's price isn't the only thing rising: its network activity is also booming.
According <a target="_blank" href="https://x.com/ali_charts/status/1865450701544935807″ target=”_blank” rel=”nofollow”>data from analyst Alí Martínez (IntoTheBlock), large ethereum transactions are seeing a significant increase. Martínez highlights that the volume of weekly transactions has skyrocketed by more than 300%, reaching the impressive figure of 17.15 billion dollars yesterday. This increase in network activity indicates increased confidence among institutional players and high net worth investors, which often precede retail adoption during major bull runs.
Such growth in trading volume historically correlates with sustained upward price movements, suggesting that ethereum's rally may not be over. As the second-largest cryptocurrency by market capitalization, eth appears well positioned to continue setting new highs if these trends persist.
Despite this optimism, eth faces a key milestone ahead: its all-time high of $4,878, set in November 2021, is still 20% away. While ethereum's recent breakout has strengthened bulls, analysts warn that reaching and maintaining prices near the ATH will require significant buying pressure and broader market strength.
Related reading
If the current trajectory holds, ethereum could approach its ATH sooner than expected, further solidifying its status as the go-to blockchain for decentralized applications and financial innovation. For now, investors are closely monitoring ethereum price action and network data to assess whether this rally has the momentum to break new ground or if a pullback is imminent.
eth surpasses $4k
ethereum is currently trading at $3,960, showing resistance after hitting a local high of $4,096 just two days ago. This rally has put ethereum back in the spotlight, and investors are keeping an eye on key levels that could dictate its next move.
A weekly close above the critical $4,000 mark would mark the highest weekly close for eth since December 2021, a major milestone for the second-largest cryptocurrency. Such a close would reinforce the bullish sentiment surrounding ethereum, potentially attracting more buying pressure and setting the stage for a continued rally towards its all-time high of $4,878.
On the other hand, failing to achieve a weekly close above $3,880 (its previous highest weekly close) could indicate waning momentum. In this scenario, ethereum may enter a consolidation phase as traders take profits and the market assimilates recent gains. Consolidation below this level would likely keep eth range-bound in the near term, with $3,880 and $4,000 acting as key resistance levels.
Related reading
The next few days will be crucial as eth navigates this critical juncture. A decisive weekly close will likely determine whether ethereum extends its current rally or pauses to consolidate, offering traders both opportunities and challenges in this dynamic market.
Featured image of DALL-E, TradingView chart
