Cryptocurrency expert Ali Martinez has projected that Ethereum (ETH) could soon hit the $5000 mark. The key to this surge lies in ETH’s ability to break the supply barrier ranging between $4522 and $4646. This critical zone is where approximately 600,000 addresses have acquired 1.63 million ETH. Martinez’s analysis, based on IntoTheBlock data, raises both anticipation and caution among investors.
Challenges to Ethereum’s Price Ascent
The upward trajectory of Ethereum, however, may encounter hurdles due to resistance from sellers seeking to recover their initial investments. This scenario is likely if the margin balance is inadequate to sustain funding fees. Additionally, HyblockCapital’s analysis reveals the potential for major liquidations if ETH hits $4205, though a consistent close above this figure could fuel further price appreciation.
Martinez’s charts suggest that Ethereum might not face substantial opposition if it remains under $4310. On the other hand, breaking past $4860 could accelerate the climb to the $5000 threshold. The perpetual contract funding rate, currently at 0.068% as per Santiment, is another indicator to watch. A positive rate here implies that Ethereum is trading at a premium, hinting at market optimism.
Ethereum Network’s Vital Signs Strengthen
Furthermore, the uptick in Ethereum’s price is complemented by a surge in active addresses. From March 10th to the present, the count of active Ethereum addresses has spiked to 537,000, suggesting increased interest and faith in the cryptocurrency. This rise in active participation also signals a healthier network and possibly a bullish future for ETH investors.