Ethereum (ETH) continues its strong upward momentum, rising above $4,500 in its recent session, approaching a new all-time high.
The second-largest cryptocurrency by market capitalization shows signs of new investor optimism. However, whether or not you can go above $5,000 depends on maintaining your primary technical and psychological level.
Ethereum holders may not be able to sell
Currently, approximately 97% of Ethereum addresses are profitable. Historically, when this percentage exceeds the 95% mark, investors begin to recognize profits, it shows the top of the market. In past cycles, this level often preceded a short-term reversal, as traders moved to secure profits.
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However, Ethereum’s resilience within these signals suggests a change in investor behavior. Despite being temporarily in the “profit saturation zone,” ETH was able to maintain the upward trend. This was supported by strong market-wide bullishness. This shows that despite many holders making profits, there may be limited sales pressures and that cryptocurrencies can maintain momentum in the short term.
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Ethereum’s macro outlook is optimistic. The Moving Average Convergence Divergence (MACD) indicator recently signed up a bullish crossover, signaling it to strengthen its upward momentum. This shift represents a transition from integration to a potential breakout phase, often associated with an extension of price increases.
Furthermore, the indicator histogram continues to expand aggressively, reinforcing the view that bullish momentum is building. As this trajectory continues, Ethereum will see new influxes from traders and institutional investors, further driving the climb. Maintaining momentum is essential to maintaining over $4,500 to ensure confidence across the market.
ETH prices require bounce
The Ethereum priced at $4,523 and will test the $4,500 level as new support. This level must be held for the ETH to move towards $4,775 towards the next key resistance. A successful breakout here could lead to a higher level of another leg.
Given the technical setup and strengthening bullish metrics, Ethereum could rise above $4,775, retesting its all-time high of $4,956. By keeping that move, you can open the door to pushes over $5,000, marking the historic milestone for Altcoin King.
However, Ethereum prices could lose foothold if investors start making profits after the latest surge. A drop below $4,500 could cause a fix against $4,222, negating bullish outlook in the short term.
