Ethereum Price Stalls at $4,000, but On-Chain Metrics Signal a Potential Surge

Ethereum, the world’s second-largest cryptocurrency by market capitalization, is facing a critical resistance level at $4,000. Despite stalling momentum over the past three weeks, on-chain data and market dynamics suggest a potential breakout could be on the horizon.

Resistance at $4,000

Currently trading at $4,008, Ethereum has struggled to break past the $4,000 barrier. This level has acted as a formidable resistance, halting upward movement despite the broader bullish sentiment in the crypto market.

Positive Catalysts for Ethereum

One key factor supporting Ethereum’s price outlook is Bitcoin's recent rally to record highs. Historically, altcoins like Ethereum tend to follow Bitcoin’s trajectory, potentially signaling further gains.

Additionally, spot Ethereum ETFs have been gaining significant traction, with cumulative inflows exceeding $2.3 billion. Grayscale and BlackRock currently dominate the market share, and the ETF inflows have increased consistently over the past 17 days.

On-Chain Metrics Indicate Accumulation

On-chain data reveals robust activity within the Ethereum network. Active Ethereum addresses remain steady at just under 600,000, while total addresses have surpassed 123 million, according to data from IntoTheBlock.

Whale activity is also notable, with 90 wallets holding between 100,000 and 1 million ETH tokens and 966 wallets holding between 10,000 and 100,000 ETH tokens. This sustained accumulation signals confidence among large holders.

Additionally, over 7.2 million ETH were purchased slightly below the $4,000 level, creating strong demand and establishing a key support zone.

Recent whale transactions further underscore bullish sentiment. For example, one whale transferred 16,000 ETH—valued at $64 million—from Binance to a custodial wallet. Similar transactions have been observed in recent weeks, reflecting increased long-term holdings.

DeFi Ecosystem and Total Value Locked

Ethereum’s decentralized finance (DeFi) ecosystem is thriving, with its total value locked (TVL) surging by 36% to $79 billion. Ethereum-based DeFi protocols now account for more assets than the next ten blockchains combined, solidifying its dominance in the sector.

Technical Analysis and Price Outlook

Ethereum’s weekly chart illustrates a sustained bullish trend in recent weeks. However, the $4,000 resistance level has formed a triple-top pattern, a bearish indicator that traders are closely monitoring. This pattern has emerged slightly above the 23.6% Fibonacci Retracement level.

Despite this, Ethereum remains above its 50-week and 100-week moving averages, which suggests strong underlying support. Furthermore, the price is trading between the middle line and the first resistance level of Andrew’s pitchfork tool.

A successful breakout above the $4,000 resistance level could pave the way for Ethereum to retest its all-time high of $4,877, with the potential to reach $5,000 in the coming months.

Conclusion

While Ethereum faces a challenging resistance level at $4,000, positive on-chain metrics, whale activity, and a flourishing DeFi ecosystem point to a strong likelihood of further price gains. A breakout above this key level could mark the beginning of Ethereum’s next significant rally.