Ethereum continued its red-hot streak this week, soaring another 6% past $3,700 to reach its highest level since early 2022. The surge brings ETH’s total rally to over 40% in the past three weeks, as the smart contract giant mirrors a broader crypto market revival.
TLDR
Ethereum price surges past $3,500 resistance, forming new multi-month high near $3,715
ETH following Bitcoin’s breakout above $68,000, showing strong upside momentum
Resistance levels to watch for ETH include $3,720, $3,850, and major threshold at $4,000
3.62M ETH worth $12.69B on verge of profitability if price can top $4,076 average cost basis
Overbought signals on RSI and bearish divergences hint at increased volatility and correction risks
With the bullish momentum fueling a steep ascent, Ethereum swiftly pierced through the $3,700 mark to post a new multi-month high at $3,715 in weekend trading. Holding above key support at former highs around $3,550 would add further credence to the positive market structure.
In lock-step with its big brother Bitcoin, which itself burst through $68,000, ETH has posted a series of higher lows and higher highs to revive technical analysts’ hopes for a push towards record peaks. The next band of resistance between $3,780 and $3,850 now forms the immediate battleground for any potential leg higher.
Overcoming those thresholds would open the door for a full-bodied assault on the critical psychological marker around $4,000. A confirmed daily close above it would signify a return to price levels last witnessed near Ethereum’s apex in late 2021 before crypto winter gripped the entire asset class.
With market participants galvanized behind Ethereum’s upgrade roadmap like the looming Dencun release, on-chain data points reveal bulls steadfast in their conviction on the path ahead. Despite prices doubling since hitting 2022 lows, there have been scarce signs of profit-taking across either retail or whale cohorts.
According to tracking firm IntoTheBlock, 3.62 million ETH worth almost $13 billion stand to be activated into profitability if the cryptocurrency can eclipse the $4,076 average cost basis those coins were acquired at. Such a development would place over 90% of Ethereum’s circulating supply in the money for the first time since November 2021.
Ethereum’s largest holder bracket, entities controlling 100 to 100,000 coins, has similarly stood pat throughout the recent volatility. Exchange balances continue diminishing as well, with little evidence of heightened selling pressure emerging amidst improving price conditions.
Nonetheless bulls are far from being out of the woods just yet. Weekly candles reflect overbought readings on the relative strength index for the first time since a temporary top in May 2022, although consolidative action can persist for weeks before momentum fades.
Shorter timeframes like the 4-hour chart exhibit bearish divergences between recent swing highs, hinting at underlying weakness beneath the surface. A failure to reclaim the $3,800 would raise the risks of a deeper pullback, with $3,300 representing an initial backstop ahead of primary support at $3,000.
All told, investors are locked in a spirited battle to determine Ethereum’s short-term fate at key inflection points.
If whales continue holding tight and meaningful price floors establish above $3,500, the path of least resistance clearly skews towards another imminent run at $4,000.
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