TLDR
Ethereum reached a new yearly high of $4,096, surpassing March’s previous peak
Large ETH transactions have increased by 300%, reaching $17.15 billion in volume
Current price sits around $3,960, with next major resistance at $4,540
Analysis suggests minimal resistance between current price and all-time high of $4,878
Strong support zone exists between $3,514-$3,634 with 5.1 million tokens held
Ethereum continued its upward trajectory this week, reaching a new yearly high of $4,096, marking a crucial milestone in the cryptocurrency’s 2024 performance. The second-largest cryptocurrency by market capitalization pushed past its previous March peak by $3, demonstrating renewed market confidence.
Transaction data reveals a remarkable surge in network activity, with weekly volume increasing by more than 300%. According to data from IntoTheBlock, large Ethereum transactions reached $17.15 billion yesterday, indicating growing participation from institutional investors and wealthy market participants.
The surge in transaction volume coincides with increased buying pressure, as multiple large-scale purchases were recorded across major exchanges. This uptick in activity suggests a broader market interest in Ethereum beyond retail traders.
Price movements show strong support forming around the $3,560 level, where approximately 3.4 million addresses hold 5.1 million tokens. This concentration of holdings creates a substantial support zone between $3,514 and $3,634, potentially providing a safety net against major price corrections.
Technical analysis of current market conditions reveals minimal resistance between the current price level and Ethereum’s previous all-time high of $4,878. The only notable resistance appears around $4,540, where about 608,960 addresses collectively hold 668,980 ETH tokens.
Market data indicates that Ethereum’s recent price action has maintained stability above the crucial $3,800 mark, with consistent trading volume supporting the upward movement. The sustained activity suggests organic growth rather than speculative trading.
Ethereum Price on CoinGecko
The weekly close becomes particularly important for market sentiment, as closing above $4,000 would represent the highest weekly close since December 2021. This technical milestone could attract additional buyer interest and potentially catalyze further price appreciation.
On-chain metrics show increased wallet activity, with new addresses joining the network at an accelerated rate. This growth in user adoption parallels the rise in transaction volumes, suggesting broader market participation.
Trading patterns indicate a shift in market dynamics, with longer-term holders maintaining their positions while new buyers enter the market. This behavior typically precedes sustained price movements, as seen in previous market cycles.
Large #Ethereum transactions are surging! The weekly transaction volume has skyrocketed by over 300%, hitting $17.15 billion today. pic.twitter.com/3cBBG48RgR
— Ali (@ali_charts) December 7, 2024
The current price level of $3,960 represents a critical juncture for Ethereum, sitting just below the psychological $4,000 barrier. Market observers note that maintaining prices above this threshold could establish a new support level for future price action.
Recent data shows that buy orders have consistently outpaced sell orders on major exchanges, creating upward pressure on prices. This imbalance between supply and demand contributes to the current price stability and upward trajectory.
Exchange flow metrics indicate a decrease in available supply on trading platforms, as more investors move their holdings to private wallets. This reduction in readily tradeable tokens typically correlates with decreased selling pressure.
The percentage of Ethereum tokens held in smart contracts continues to rise, effectively reducing the circulating supply available for trading. This lock-up of tokens contributes to the overall market dynamics and potential price appreciation.
Historical price data suggests that Ethereum’s current position mirrors previous accumulation phases that preceded major price movements. However, past performance does not guarantee future results.
The latest market data shows Ethereum trading at $3,960, with 24-hour volume maintaining steady levels above industry averages. Price action remains contained within an upward channel, suggesting continued bullish momentum.
The post Ethereum (ETH) Price: Breaks $4,000 as Weekly Transactions Hit $17.15 Billion appeared first on Blockonomi.