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Ethereum price has stalled at the $4,000 resistance level, but on-chain metrics and other external factors point to further gains.
Ethereum (Ethereum), the second largest cryptocurrency by market capitalization, was traded at $4,008. But the momentum failed to continue as it faced resistance for the past three weeks in a row.
However, ETH has positive catalysts that could push its price higher in the near term. The first major catalyst is that Bitcoin (Bitcoin) continued to rise and moved to a record high this week. Altcoins like Ether often track the price of Bitcoin.
Ethereum ETFs It is also seeing strong inflows, a trend that may continue in the coming months. Its cumulative flows rose to more than $2.3 billion, with Grayscale and Blackrock having the largest market share. It has seen inflows for the last 17 consecutive days.
On-chain metrics show that the number of active Ethereum addresses has remained steady at just under 600,000. Total addresses have risen to more than 123 million, according to IntoTheBlock.
More data, as shown below, shows that Ethereum whales continue to hold onto their coins. There are 90 accounts holding between 100,000 and 1 million ETH tokens, and 966 of them hold between 10,000 and 100,000 coins.
Meanwhile, data shows that Ethereum is witnessing a buildup below the $4,000 benchmark. 7.2 million coins were purchased just below this level.
Etherscan data It shows that an Ethereum whale transferred 16,000 ETH tokens worth $64 million from Binance to a custodial wallet. More such transactions have occurred in the past few weeks.
Meanwhile, Ethereum’s decentralized exchange ecosystem is doing well as its total value locked jumped 36% to $79 billion. Its DeFi protocols have more valuations than the next 10 blockchains combined.
Ethereum price may rise soon
The weekly chart shows that ETH price has been in a strong uptrend in the past few weeks. It found a strong barrier at $4,000, above which it has failed to move since March.
The main risk is that it has formed a triple top pattern, which is a common bearish sign in the market. This pattern formed slightly above the 23.6% Fibonacci retracement level.
Ethereum remained above its 50-week and 100-week moving averages. It is also located between the middle line and the first resistance point of Andrew’s Pitchfork.
Therefore, a break above the triple top level would indicate further gains, possibly to the all-time high at $4,877. A move above that would lead to further gains to $5,000.
