Ethereum Nears New Milestone: Potential Surge Beyond $5,000

Ethereum Approaching New Heights

Ethereum (ETH) is on the brink of a significant breakthrough, with analysts forecasting a potential surge past the $5,000 mark. CoinDesk Research's technical analysis indicates that Ethereum recently experienced an uptick in trading activity, though it faced resistance leading to a narrowed trading range.

Analyst Insights

• Renowned crypto analyst Michaël van de Poppe noted on social media that Ethereum's robust ecosystem, marked by active developers and innovative products, positions it favorably for achieving new record highs.
• The current chart patterns suggest that buyers are active, but sellers remain vigilant at the $3,860–$3,880 range. A decisive break above $3,887.35 is essential for bulls to regain control.

Technical Analysis Highlights

• Performance: ETH rose by 1.50% to $3,822.60, with trading volume up by 19.01% compared to the seven-day average.
• Momentum Peak: At 2 p.m. UTC, ETH hit a high of $3,887.35 on significant volume.
• Late Session Dynamics: The price fell by 1.30% in the final hour, indicating resistance near $3,865.

Support and Resistance Levels

• Support: The $3,680–$3,720 range provided a cushion during early trading.
• Resistance: The $3,860–$3,880 band remains a critical barrier.
• Near-Term Range: Trading concentrated between $3,730 and $3,880 after testing the upper band.

Volume Analysis

• Overall: Increased volume signals active participation in the market.
• Peak Activity: The strongest bullish momentum was observed at 2 p.m. UTC.
• Closing Session: High volume during the price drop indicates supply pressure.

Market Patterns

• Uptrend with Caution: Despite higher lows, the lower high signals potential seller activity.
• Range Behavior: Demand is evident on dips, with supply resistance at $3,860–$3,880.
• Next Steps: Bulls need a solid break above $3,880, while bears aim to push below $3,720.

Strategic Outlook

• Bullish Scenario: A reclaim of $3,880 could lead to testing $3,887.35 and beyond.
• Bearish Scenario: A drop below $3,720 would expose the $3,680 support level.
• Trader Sentiment: Many traders await a clear breakout from the $3,730–$3,880 range for further action.

CoinDesk 5 Index Context

• The CD5 index saw fluctuations, rising from $1,878.33 to $1,924.98 before settling, reflecting profit-taking.

Disclaimer: Portions of this article were reviewed by CoinDesk's editorial team to ensure accuracy. For more details, refer to CoinDesk's standards and AI policy.