Ethereum Price Could Reach New All-Time High With Little Resistance, Analyst Explains Why

by

As a seasoned researcher with a keen eye for market trends and a soft spot for altcoins, I find myself intrigued by the recent price action of Ethereum. After a rather lackluster performance this weekend, the second-largest cryptocurrency has shown signs of life, returning to its $4,000 mark. While it’s too early to pop the champagne, the optimistic predictions by analyst Ali Martinez have caught my attention.

It appears that Ethereum is showing signs of renewed energy in its price movement, following a series of weeks where Bitcoin‘s impressive performance seemed to overshadow it. Starting off the week with subdued price fluctuations, Ethereum, often referred to as the “queen of altcoins,” has surpassed $4,000 again for the first time since March.

Reflecting current market trends, Ethereum’s price hasn’t been particularly noteworthy over the weekend, as it battles to stay above $4,000. However, a well-known analyst on social media platform X predicts that Ethereum could soon reach its previous record high from the past cycle.

Is A New All-Time High On The Cards For ETH?

On the bustling Saturday of December 7th, I, an analyst, delved into the X platform’s vibrant digital landscape to share a captivating on-chain observation regarding Ethereum’s price dynamics. As a seasoned crypto observer, my analysis suggested that Ethereum’s current record high of $4,878 might encounter no obstacles in its journey and could even pave the way for a fresh, unprecedented peak.

This analysis derives from the typical investment cost for numerous Ethereum holders, as shown in the following graph. It illustrates how these investors have distributed their Ethereum tokens around the current market price, based on information provided by IntoTheBlock.

In this context, the size of the dots signifies the quantity of tokens bought within certain price ranges, highlighting the importance and robustness of each level as potential resistance or support points.

From the highlighted graph, it appears that Ethereum’s buying activity has been quite low just above its current price. This indicates that there might not be much opposition to Ethereum’s potential price increase, with only a slight resistance at approximately $4,540, as suggested by Martinez.

According to IntoTheBlock’s data, approximately 608,960 addresses have purchased around 668,980 ETH tokens at prices ranging between $4,474 and $4,598. This buying activity, while not substantial when compared to the total number of addresses (as indicated by the size of the dots in the given chart), seems to be the primary resistance level for Ethereum’s price increase.

Martinez, on the other hand, suggested that an optimistic outlook might be the prevailing story for ETH currently. The crypto analyst believes this trend will continue as long as the Ethereum price stays above its current demand area of approximately $3,560. According to data from IntoTheBlock, over 3.4 million wallets have accumulated nearly 5.1 million tokens between the prices of $3,514 and $3,634, making this region a significant support zone.

Ethereum Price At Glance

Currently, the cost of ETH is generally stabilized near $4,000, showing a minimal decrease of almost 2% over the past day. However, according to information from CoinGecko, the price of this altcoin has increased by nearly 10% in the last week.

Read More

2024-12-08 17:26