Ethereum, the second-largest cryptocurrency, has quietly risen above $4,000, reaching its highest level since November 2021. ETH reached an intraday high of $4,093 on Tuesday before falling.
At the time of writing, ETH was down 0.37% in the last 24 hours to $4,006. At current prices, ETH is currently 17.51% away from its all-time high of $4891, set in November 2021.
While eyes are peeled to determine Ethereum's next move; enthusiasts expect ETH to take on its all-time highs of $4,891 and subsequently the $5,000 level.
According to crypto analyst Ali, Ethereum's path to $5,000 looks increasingly clear as resistance thins. However, the journey might not be as smooth as it seems, as a critical barrier lurks within range.
As Ethereum charts its course toward the coveted $5,000 mark, it faces a formidable obstacle in the form of a supply zone comprising 1.63 million ETH. This hurdle, positioned strategically at a key resistance range, has captured the attention of traders and analysts, presenting a challenge to Ethereum's upward momentum.
The resistance range, identified by Ali as between $4,522 and $4,646, is where a substantial number of addresses hold their ETH: 600,000 addresses hold 1.63 million ETH in this range.
As Ethereum approaches this resistance, the market's response will be telling. A breakthrough could trigger a rally, propelling Ethereum to new all-time highs. Breaking through this supply zone would require a considerable influx of buying pressure to absorb the sell orders and propel Ethereum's price beyond the resistance level.
However, if buyers fail to overcome this obstacle, Ethereum's price may struggle to sustain its upward trajectory, potentially leading to a period of consolidation or price correction.
In good news for the ETH network, Dencun, the most-awaited improvement since the merge, is slated to arrive within the next 24 hours, promising to drastically lower layer-2 transaction fees.