According to crypto currency expert Ali Martinez, Ethereum (ETH) is on the verge of a significant price increase, potentially reaching the $5000 mark. For this to happen, ETH must breach a major supply zone extending from $4522 to $4646. This zone is critical as it is the breakeven point for 600,000 addresses holding 1.63 million ETH. Breaking this supply wall could trigger massive gains, but it also poses a resistance that may hamper the ascent.
Resistance and Recovery Indicators
Analysts warn that the pursuit of breakeven points might impede Ethereum’s climb, as sellers may congregate at this threshold. Moreover, a potential obstacle for the altcoin is the need for a margin balance high enough to pay funding fees. HyblockCapital’s analyses suggest that hitting $4205 could lead to notable liquidations, yet sustaining above this price might catalyze further growth. The funding rate, another critical metric, suggests a premium trading price for ETH, reflecting a positive outlook for its price trajectory.
Martinez’s chart analysis points to a smoother path for Ethereum to reach $5000 once it overcomes the $4860 level. Prior to that, the cryptocurrency appears to face less resistance below $4310, setting the stage for a potential rally.
Indications from Network Activity
The number of active Ethereum addresses has surged, signifying heightened interest and investment in the network. As of the latest data, there are 537,000 active addresses, a notable spike from earlier counts. Such an increase in network activity is often viewed as a bullish sign and could be indicative of a healthier blockchain ecosystem, further supporting the optimistic price predictions.