The cryptocurrency markets have been facing some selling pressure recently, which has caused some concern among investors. Bitcoin was at risk of losing support at $95,000 after a single test, and Ethereum has also been behaving sluggishly. However, the recent recovery in Bitcoin’s price has raised hopes for a healthy upward trend, with Ethereum closely following suit.
Ethereum’s price has been on a steep upward trend since the beginning of the quarter, despite some bearish interference. This momentum is expected to continue into the upcoming week due to strong on-chain metrics, such as a significant increase in daily active addresses. According to data from popular analyst Ali, active addresses have increased by over 4.24%, new addresses by 2.65%, and zero-balance addresses have decreased by over 4%. This suggests that market participants are optimistic about the future trend.
The ETH price has managed to break through key resistance levels between $3700 and $3810, with more than 3 million wallets purchasing over 4.6 million ETH in that range. Traders are now hopeful for a potential weekend surge that could push the price above $5000 as demand and supply dynamics improve.
The strength of Ethereum against Bitcoin will also play a crucial role in determining the end of Ethereum’s sluggish behavior. The ETH/BTC pair is currently within a descending parallel channel, with little indication of a sharp rise in the near future. For Ethereum to break out, Bitcoin will need to reach a new all-time high, which could help ETH surpass $4000 and even reach the $4200 resistance level.
In 2021, the ETH/BTC pair broke out of consolidation and reached new highs, leading to a surge in Ethereum’s price. A breakout of the current consolidation phase could have a similar effect on Ethereum’s price, potentially pushing it into five-digit territory in the next bull run. Overall, the outlook for Ethereum remains positive, with potential for significant growth in the near future.