Ethereum is trying to break above the critical $4,000 level, approaching an all-time high. The market has shown skepticism about Ethereum’s performance this cycle, with some analysts predicting it could underperform compared to previous growth phases. Despite these doubts, Ethereum has proven its resilience by consistently finding demand at key support levels and maintaining a bullish price structure.

Adding to the optimism are on-chain data from IntoTheBlock, which highlights the mighty fundamentals of Ethereum’s network activity this week. Metrics such as lively addresses, transaction volume, and net flows suggest a well ecosystem, strengthening ETH’s potential to continue its upward trajectory. These indicators point to growing participation and growing confidence among investors, even in the face of broader market uncertainty.

As Ethereum approaches critical resistance, all eyes are on whether it can maintain its momentum and break above $4,000. If successful, this breakout could reignite bullish sentiment and pave the way for ETH to retest its all-time highs, silencing the doubters in the process. However, failure to overcome this hurdle could result in further consolidation, keeping traders in suspense as they await Ethereum’s next major move.

Ethereum data signal strength

Ethereum has been climbing steadily in recent weeks, fueled by a mighty uptrend that began earlier this month. The price momentum is attracting the attention of top analysts and investors who are closely watching a break above yearly highs as ETH approaches its all-time high (ATH). The anticipation in the market is palpable, and many see this as a key moment for Ethereum to solidify its position in the bull cycle.

Most recently top analyst Ali Martinez shared on-chain pointers with IntoTheBlockrevealing a solid outlook for the Ethereum network this week. Dynamic addresses increased by 4.24%, signaling increased user participation and interest. Similarly, the number of fresh addresses increased by 2.65%, suggesting increasing adoption and investor activity. It is worth noting that zero balance addresses dropped by 4.06%, which indicates that dormant wallets are coming back to life and ETH is being reactivated for transactions or investments.

These positive indicators highlight Ethereum’s growing momentum, reinforcing the belief that it is poised for significant price movement. If ETH successfully breaks through its yearly highs, it could trigger a massive rally, potentially setting fresh records. However, failure to maintain upward momentum could result in Ethereum pulling back to consolidate further before attempting another breakout.

With fundamentals strengthening and the market poised for a breakout, Ethereum appears poised to make its next major move. Whether it’s hitting fresh all-time highs or finding support for the next push, the coming weeks will likely be crucial in determining Ethereum’s trajectory for the remainder of the bull cycle. As sentiment grows, all eyes are on Ethereum’s ability to capitalize on the growing momentum.

ETH test delivery

Ethereum (ETH) is currently trading at $3,920, showing resilience after several failed attempts to break above the critical $4,000 resistance level. This price point remains a psychological and technical barrier for ETH, and its clearing is necessary to confirm the continuation of the bullish trend.

Market attention is focused on Ethereum’s ability to reclaim the $4,000 level, which would likely serve as a catalyst for a mighty rally towards fresh yearly highs. However, the inability to decisively break this resistance has kept ETH in a consolidation phase, leaving some uncertainty about its next move.

If Ethereum does not maintain its current momentum and breaks above $4,000 in the coming sessions, the price could face increased selling pressure. In such a scenario, a pullback towards lower demand levels around $3,500 is likely. This level previously acted as a solid support zone, and a retest could form the basis for another uptrend.

As the market awaits a decisive move, Ethereum remains in a critical position. A break through $4,000 would reignite bullish sentiment, while a failure to do so could signal further consolidation or correction before another significant price action occurs.

Featured image from DALL-E, chart from TradingView