Ethereum has experienced a substantial surge in price over the weekend, successfully surpassing the $4,200 mark for the first time since 2021. Data compiled by CoinGecko indicates that this leading altcoin has seen its value increase by over 25% in the past week.
Fueled by this strong upward trend, many anticipate Ethereum’s price will continue its ascent in the days ahead. However, recent technical analysis suggests that the digital currency may currently be navigating a resistance zone.
Could Ethereum’s Price Target $4,800 Next?
In a concise analysis shared on CryptoQuant, CryptoOnchain suggested that Ethereum is poised to overcome a significant resistance point, both psychologically and technically. The analyst believes that a sustained break above this level would be necessary for Ethereum to challenge its historical peak value.
Elaborating on this view, CryptoOnchain pointed out that Ethereum’s price is currently positioned within a $4,000-$4,400 band (as shown in the chart), an area that has historically presented strong resistance and selling pressure over several years. Despite this, the analyst highlighted that the MACD (Moving Average Convergence Divergence) indicator has turned positive, implying a continuation of the current bullish trend.
From an on-chain analysis perspective, CryptoOnchain cautioned that Ethereum could face potential selling pressure, as the MVRV (Market Value to Realized Value) ratio is approaching its upper historical limits. However, other on-chain metrics suggest that investors are neither taking profits nor displaying signs of extreme euphoria, despite widespread profitability across the market.
Notably, the NUPL (Net Unrealized Profit/Loss) metric, which tracks the overall profit and loss position of cryptocurrency investors, currently resides in a high positive region. While this indicates that Ethereum investors are largely in profit, it also suggests that the Ethereum market is not yet overheated.
CryptoOnchain concluded that a convincing break above the $4,400 level could pave the way for Ethereum to reach $4,800 in the near term. The analyst added that the Ethereum market hasn’t reached an excessively heated state, implying there is room for further gains in the intermediate timeframe.
Current Ethereum Price
At the time of this report, ETH is trading around $4,270, marking an approximate 6% increase over the last 24 hours.