- High buying pressure has emerged as Ethereum’s exchange reserves have dwindled.
- However, RSI remained in overbought territory.
Ethereum (ETH) It has been struggling to break the $4,000 barrier for quite some time as it is being rejected near resistance.
However, according to the latest analysis, the path for ETH towards new all-time highs is very clear. Therefore, AMBCrypto conducted further investigation to find out if it is actually true.
Ethereum is heading in the right direction
ETH price recorded a 7% price increase last week, pushing the token price to close to $4,000. At the time of writing, ETH was trading at $3.05,000, with a market capitalization of over $476 billion.
Meanwhile, Ali Martinez, a famous cryptocurrency analyst, posted this post. tweet reveal it There was nothing stopping ETH from reaching new all-time highs. The only decent resistance area ahead was around $4,540.
However, as long as the $3,560 demand zone holds, odds are good for the bulls.
Will ETH reach $4.5,000 soon?
After Martinez’s tweet revealed the possibility of ETH reaching $4.5,000, AMBCrypto evaluated the token’s on-chain metrics to find the likelihood of this happening in the near term.
ETH’s Pi Cycle Top indicator showed that ETH is trading well between the top and bottom of the market. If the metrics are to be believed, the highest possible market price for ETH was $5.9,000.
Therefore, it appears that the ETH high will soon reach $4.5,000.
Source: Glassnode
CryptoQuant’s data It said that buying pressure for the token is increasing. This is evident due to the decline in ETH’s foreign exchange reserves.
Additionally, Ethereum’s Coinbase premium is in green, indicating strong buying sentiment among U.S. investors. However, several indicators also looked bearish.
For example, the taker buy/sell ratio for ETH has turned red. Whenever this happens, it means selling sentiment is dominant in the derivatives market. More sell orders are filled by takers.
In addition to this, ETH’s NUPL (Net Unrealized Profit/Loss) has entered the “Belief” stage.
First of all, NUPL is the difference between relative unrealized profits and relative unrealized losses. Historically, whenever the indicator reaches this level, a price correction follows.
If history repeats itself, ETH may not rise above $4,000 in the near term.
Source: Glassnode
ETH’s problems are not over yet. The token’s Relative Strength Index (RSI) was in overbought territory.
read Ethereum (ETH) price prediction 2024~2025
This could motivate investors to sell their holdings, which would likely push the price of ETH lower in the future.
Nonetheless, the MA cross indicator supported the bulls as the 9-day MA is well above the 21-day MA.
Source: TradingView