The Bullish Momentum of Ethereum Continues Despite Bearish Interference
The crypto markets have been facing selling pressure recently, leading to concerns about the stability of major cryptocurrencies like Bitcoin and Ethereum. However, the latest recovery in Bitcoin’s price has sparked optimism for a healthy ascending trend, with Ethereum closely following suit.
Strong On-chain Metrics Driving Bullish Momentum
Ethereum has been maintaining a steep ascending trend since the beginning of the quarter, despite bearish interference. This has led to speculation that the ETH price will break through important resistance levels in the near future. On-chain metrics, such as a significant increase in daily active addresses, are contributing to the continuation of bullish momentum in the upcoming week.
According to data from Intotheblock shared by popular analyst Ali, active addresses for Ethereum are up by over 4.24%, new addresses have surged by 2.65%, and zero-balance addresses have dropped by over 4%. This indicates that market participants are optimistic about the future trend of Ethereum. With the ETH price surpassing crucial resistance levels between $3700 and $3810, over 3 million wallets have bought more than 4.6 million ETH.
Potential Weekend Jump and Price Targets
Traders are now anticipating a potential weekend jump in Ethereum’s price, which could help it break the $5000 mark as demand and supply dynamics strengthen. The end of Ethereum’s sluggish behavior may be signaled by its growing strength against Bitcoin. However, the ETH/BTC pair is currently stuck within a descending parallel channel, with little possibility of a steep rise.
The weekly ETH/BTC pair has failed to rise above the average bands of the channel, indicating bearish activity. The bearish pattern has persisted since Q4 2022, suggesting that Ethereum is struggling to trade independently. For Ethereum to gain strength against Bitcoin, it is crucial for the BTC price to surpass its current all-time high.
Potential for Ethereum to Reach New Heights
In 2021, the ETH/BTC pair broke above consolidation levels, leading to a significant rally in Ethereum’s price and a new all-time high. A breakout of the current consolidation phase could have a similar impact on Ethereum’s price rally, potentially pushing it towards a five-digit level in the next bull run.