Ethereum’s Breakthrough: A Path to New Record Highs
Ethereum Surpasses $4,000: A New Era of Growth
Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, has successfully breached the significant $4,000 threshold after an extended period of consolidation. This milestone is more than just a price point; on-chain metrics indicate the potential for Ethereum to reach unprecedented heights.
Low Resistance and Strong Support: The Foundation of Ethereum’s Ascent
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Ethereum’s current market behavior showcases minimal resistance as it climbs, supported by robust demand zones. According to insights from IntoTheBlock, shared by cryptocurrency analyst Ali Martinez, Ethereum is encountering modest resistance near $4,540. Meanwhile, a strong demand zone around $3,560 provides a sturdy base for a possible breakout.
Analyst Insights: Ethereum’s Resistance and Demand Zones
Ali Martinez noted, “There is nothing preventing Ethereum from reaching new all-time highs, with only a modest resistance zone at approximately $4,540.”
Ethereum’s Market Dynamics: In/Out of the Money Analysis
The analysis, based on the ‘Ethereum’s In/Out of the Money Around Price’ metric, reveals that around 89% of ETH holders are currently ‘in the money’ at the prevailing price of about $3,990. This stability is underpinned by a demand zone ranging from $3,535.55 to $3,588.88, encompassing over 11.6 million ETH acquired by 1.3 million addresses. Conversely, the resistance zone between $4,540 and $4,579 is relatively minor, involving just 600,936 ETH held by fewer than 61,000 addresses. This indicates a potential for rapid price escalation once Ethereum crosses the $4,540 mark.
Ethereum’s Path to $10,000: A Potential Bull Run
On December 7, an analyst known as Captain Faibik highlighted Ethereum’s breakout from a significant triangle pattern on the weekly chart, signaling the onset of a potential bull run by 2025. If this movement sustains, Ethereum might aim for a midterm target of $10,000.
Market Sentiment and Institutional Confidence
Ethereum’s bullish outlook is bolstered by a broader cryptocurrency market rally, partly fueled by optimism surrounding Donald Trump’s potential pro-crypto policies. Simultaneously, the cryptocurrency spot exchange-traded fund (ETF) market is experiencing unprecedented capital inflows. Notably, Ethereum ETFs recorded a historic $428 million inflow on December 5, indicating growing institutional confidence.
Network Developments: The Impact of EIP-7691
Beyond market trends, Ethereum’s price trajectory is expected to be influenced by ongoing network advancements. The approval of EIP-7691: Blob Throughput Increase by Ethereum’s core developers marks a significant step forward. This upgrade, part of the Pectra (Prague-Electra) initiative, aims to enhance scalability by increasing blobs per block, crucial for layer-2 solutions. Post-2025-2026, this upgrade is poised to improve Ethereum’s efficiency and data capacity, potentially driving further price growth.
Ethereum Price Analysis
At the time of writing, Ethereum is trading at $4,002, marking a near 2% rally in the past 24 hours. Over the past week, the asset has appreciated by approximately 10%.
Technical Indicators and Market Momentum
Ethereum’s current valuation reflects a strong bullish trend in both the short and long term. ETH is trading above its 50-day ($3,029) and 200-day ($2,927) simple moving averages (SMA). However, momentum indicators, particularly the relative strength index (RSI), suggest overbought conditions, which could lead to a short-term price correction.
