Ethereum price stalls at key price but on-chain metrics point to a surge

Ethereum price stalled at the $4,000 resistance level, but on-chain metrics and other external factors point to more gains.

Ethereum (ETH), the second largest cryptocurrency by market cap, is trading at $4,008. However, the momentum could not continue as it encountered resistance for the last three weeks in a row.

Still, ETH has positive catalysts that could push its price higher in the near term. The first major catalyst is that Bitcoin (BTC) continues to rise and reached a record high this week. Altcoins like Ether usually follow the price of Bitcoin.

Spot Ethereum ETFs are also seeing strong inflows, and this trend may continue in the coming months. Cumulative inflows reached over $2.3 billion; Grayscale and Blackrock had the largest market share. There has been an entry for the last 17 days in a row.

On-chain metrics show that the number of active Ethereum addresses remains stable at just under 600,000. Total addresses have grown to over 123 million, according to IntoTheBlock.

More data, as shown below, shows that Ethereum whales continue to hold onto their money. There are 90 accounts holding between 100 thousand and 1 million ETH tokens, and 966 of them hold between 10 thousand and 100 thousand tokens.

Meanwhile, data shows that Ether is seeing an accumulation below $4,000. Just below this level, 7.2 million coins were purchased.

Like $ETH As it pushes back above $4000, a strong support level is forming just below this threshold.

7.2 million ETH was purchased at prices just under $4,000, signaling significant demand. This demand will help maintain Ethereum’s value above the $4,000 level. pic.twitter.com/yAunfqcbY5

— IntoTheBlock (@intotheblock) December 17, 2024

Etherscan data shows that an Ethereum whale moved 16,000 ETH tokens worth $64 million from Binance to its custodial wallet. More such transactions have occurred in the past few weeks.

Meanwhile, Ethereum’s Decentralized Exchange ecosystem is doing well, with its total value locked up 36% to $79 billion. DeFi protocols have more value than the next ten chains combined.

Ethereum price may rise soon ETH price chart | Source: crypto.news

The weekly chart shows that the ETH price has been in a strong uptrend for the past few weeks. It found a strong barrier at $4,000, which it has not been able to break above since March.

The main risk is that the market has formed a triple top formation, which is a popular bearish sign. This formation formed slightly above the 23.6% Fibonacci Retracement level.

Ethereum remains above the 50-week and 100-week moving averages. It is also between the midline and the first point of resistance of Andrew’s pitchfork.

Therefore, a break above the triple top level would indicate more gains, possibly to the all-time high at $4,877. A move above this will lead to further gains of up to $5,000.