Ethereum (ETH) is making headlines as its price heads towards the $4,100 level, hitting a fresh yearly high of $4,096. This milestone, just $3 above the previous high in March, signals a potential resurgence of the second-largest cryptocurrency by market capitalization. The price action has attracted the attention of analysts and investors, especially as Ethereum continues to outperform expectations in a market dominated by volatility and uncertainty.

IntoTheBlock’s key metrics shared by analyst Ali Martinez shed lithe on network activity, revealing an boost in the number of gigantic Ethereum transactions. Historically, such increases in transaction volume have been associated with significant price movements, suggesting Ethereum’s current uptrend may have more room to run. These developments indicate growing interest from institutional players and high-net-worth investors, further strengthening Ethereum’s position as a market leader.

The next few weeks are shaping up to be crucial as Ethereum nears the end of the year. Will it maintain its momentum and end the year above $4,100? Or maybe it will encounter resistance and rebound? With on-chain activity and market sentiment favoring Ethereum, all eyes are on the next move as traders and traders prepare for an invigorating end to 2024.

Ethereum transaction prices are rising

Ethereum continues to dominate market discussions after hitting fresh yearly highs on Friday. The cryptocurrency rose above $4,096, surpassing its previous high in March. This growth momentum has renewed investor interest, but Ethereum’s price isn’t the only thing rising – Ethereum network activity is also booming.

According to data from analyst Ali Martinez (IntoTheBlock) gigantic Ethereum transactions are seeing significant growth. Martinez highlights that weekly trading volume has skyrocketed by over 300%, reaching an impressive $17.15 billion yesterday. This surge in online activity signals increased confidence among institutional players and high-net-worth investors, who often precede retail adoption during gigantic bull runs.

Such an boost in transaction volume has historically correlated with sustained upward price movements, suggesting that Ethereum’s rise may not be over. As the second-largest cryptocurrency by market capitalization, ETH appears well-positioned to continue making fresh highs if these trends continue.

Despite this optimism, ETH faces a key milestone – it is still 20% away from the record high of $4,878 set in November 2021. While Ethereum’s recent breakout has reinvigorated bulls, analysts warn that achieving and maintaining prices near ATH will require significant buy-side pressure and broader market strength.

If the current trajectory continues, Ethereum could approach its ATH sooner than expected, further cementing its status as the go-to blockchain for decentralized applications and financial innovation. For now, investors are closely monitoring Ethereum price action and network data to assess whether this rally has the momentum to chart fresh opportunities or if a pullback is imminent.

ETH exceeds 4 thousand dollars

Ethereum is currently trading at $3,960, showing resilience after hitting a local high of $4,096 just two days ago. This rally has brought Ethereum back into the spotlight, with investors keeping an eye on key levels that could mark the next move.

A weekly close above the critical $4,000 level would mark ETH’s highest weekly close since December 2021, marking a milestone for the second-largest cryptocurrency. Such a close would strengthen bullish sentiment around Ethereum, potentially attracting more buying pressure and setting the stage for a further rally towards an all-time high of $4,878.

On the other hand, the failure to achieve a weekly close above $3,880 – the previous weekly high – could indicate weakening momentum. In this scenario, Ethereum may enter a consolidation phase as investors take profits and the market digests recent gains. Consolidation below this level would likely keep ETH rangebound in the near term, with $3,880 and $4,000 serving as key resistance levels.

The next few days will be crucial as ETH finds itself at this critical juncture. The decisive weekly close will likely determine whether Ethereum extends its current rally or pauses to consolidate, offering investors opportunities and challenges in this animated market.

Featured image from DALL-E, chart from TradingView