Ethereum (ETH) has maintained its upward trajectory, surpassing $4,500 in recent trades and nearing a new all-time high.
As the second-largest cryptocurrency by market cap, it’s reflecting renewed investor confidence. However, its ability to exceed $5,000 will hinge on sustaining critical technical and psychological barriers.
Ethereum Holders May Not Sell
Currently, approximately 97% of Ethereum addresses are profitable. Historically, when this figure crosses 95%, it may indicate a potential market peak as investors begin taking profits. In previous cycles, this threshold has often preceded short-term pullbacks as traders seek to secure gains.
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Nevertheless, Ethereum’s resilience amidst these signs points to a change in investor behavior. Even after entering the “profit saturation zone,” ETH sustained its upward trend, buoyed by strong market-wide bullishness. This suggests that while many holders are profitable, selling pressure might be limited, allowing the cryptocurrency to keep its momentum in the near future.
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Ethereum’s broader outlook remains positive. The Moving Average Convergence Divergence (MACD) indicator recently showed a bullish crossover, indicating strengthening upward momentum. This marks a shift from consolidation to a potential breakout phase, often linked with significant price rallies.
Moreover, the histogram of the indicator continues to grow positively, reinforcing the belief that bullish momentum is gaining traction. If this trend continues, Ethereum could attract renewed inflows from traders and institutional investors, further accelerating its rise. Holding momentum above $4,500 will be crucial for maintaining market confidence.
ETH Price Needs A Bounce
Ethereum’s current price is $4,523, testing the $4,500 level as fresh support. This level needs to hold for ETH to move toward the next resistance at $4,775. A successful breakout here could pave the way for further gains.
Given the strengthening technical setup and positive indicators, Ethereum could potentially rise above $4,775 and retest its all-time high of $4,956. Sustaining that move might lead to a push beyond $5,000, achieving a historic milestone for the altcoin leader.
However, if investors begin taking profits following the latest surge, Ethereum’s price may weaken. A drop below $4,500 could signal a correction towards $4,222, which would undermine the bullish outlook in the short term.
