Ethereum Price Stalls at Key Level, But On-Chain Metrics Indicate Potential Surge

Ethereum’s price has encountered resistance at the key $4,000 level, with the cryptocurrency facing significant challenges in pushing beyond this price point. Despite the stall, Ethereum still has several positive catalysts that could lead to a potential surge in the near future. As the second-largest cryptocurrency by market capitalization, Ethereum is closely tied to the performance of Bitcoin, and as Bitcoin continues to achieve new highs, altcoins like Ether often follow suit. The ongoing rally in Bitcoin has provided strong upward momentum for Ethereum, and analysts expect this trend to continue as long as Bitcoin maintains its bullish trajectory.

One of the primary indicators that Ethereum could see more upward movement is the significant inflow of capital into spot Ethereum ETFs. Grayscale and Blackrock are among the largest investors in this sector, and their combined contributions have helped raise Ethereum’s cumulative ETF inflows to over $2.3 billion. Ethereum has seen inflows for 17 consecutive days, signaling consistent investor interest. This strong institutional backing indicates that there is significant confidence in Ethereum’s future performance, which could lead to continued price appreciation.

In addition to institutional investments, on-chain metrics suggest that Ethereum is still in a favorable position for growth. The number of active Ethereum addresses has remained consistently strong, with just under 600,000 active addresses. The total number of Ethereum addresses has now surpassed 123 million, showing the increasing adoption and use of the Ethereum network. Moreover, large Ethereum holders, or “whales,” continue to hold their positions, reinforcing the sentiment that there is strong support for Ethereum at current price levels. There are currently 90 accounts holding between 100,000 and 1 million ETH tokens, and 966 accounts holding between 10,000 and 100,000 ETH. This shows that substantial amounts of Ethereum remain in the hands of long-term holders.

Interestingly, Ethereum is also seeing accumulation just below the $4,000 level. Over 7.2 million ETH have been purchased at prices near this resistance point, indicating that investors are confident in Ethereum’s future price potential and are willing to buy at these levels. In recent weeks, Ethereum whales have made significant moves, with one whale transferring 16,000 ETH (worth approximately $64 million) from Binance to a custodial wallet. These kinds of transactions suggest that large investors are positioning themselves for long-term gains, which could signal a strong upward move in Ethereum’s price if these whales continue to hold and accumulate.

Additionally, Ethereum’s decentralized finance (DeFi) ecosystem is thriving, further boosting Ethereum’s fundamental strength. The total value locked (TVL) in Ethereum-based DeFi protocols has surged by 36% to reach $79 billion, far surpassing the TVL of the next 10 blockchain ecosystems combined. This growth in DeFi applications and use cases is a key driver for Ethereum’s price, as it showcases the growing demand for the Ethereum blockchain’s capabilities beyond simple transactions, including lending, borrowing, and decentralized applications (dApps).

Technically, Ethereum is still in a strong bullish trend, with its price consistently remaining above the 50-week and 100-week moving averages. However, the formation of a triple-top pattern near the $4,000 resistance level raises some concerns. A triple-top is often seen as a bearish pattern, indicating that Ethereum may struggle to break through this resistance level and could experience a pullback. If this happens, Ethereum might retrace toward lower levels before attempting another push higher.

However, the bullish factors at play suggest that Ethereum has the potential to break through this resistance and continue its upward momentum. If Ethereum manages to surpass the $4,000 resistance, the next target could be the all-time high of $4,877. Beyond that, there is a strong possibility that Ethereum could reach $5,000, driven by continued investor demand, growing institutional interest, and the expansion of Ethereum’s DeFi ecosystem.

In conclusion, while Ethereum faces a key resistance at $4,000, the positive on-chain metrics, strong institutional interest, and growth in the Ethereum DeFi space point to the possibility of continued upward momentum. Investors will be closely watching the price action at this critical level, and if Ethereum can break through, it could experience significant gains, potentially reaching new all-time highs in the near future.