The price of Ethereum finally appears to be gaining some momentum after several weeks of lagging behind the remarkable performance of the Bitcoin price. After starting the week with slow price action, the famous “king of altcoins” returned above the $4,000 mark for the first time since March.
Mirroring the current market sentiment, Ethereum price didn’t exactly impress this weekend as it struggled to hold above $4,000. Nonetheless, a prominent analyst at social media platform
Is a new all-time high in store for ETH?
On Saturday, December 7, popular cryptocurrency analyst Ali Martinez took to the X platform to share an interesting on-chain insight into Ethereum price action. According to the crypto expert, the altcoin price appears to face no obstacles in reaching its current all-time high of $4,878 and potentially forging a new one.
This on-chain observation is based on the average cost basis of multiple Ethereum investors. The chart below shows the distribution of tokens around the current Ethereum price, according to data from IntoTheBlock.
Source: Ali_charts/X
Dot sizes correspond to token amounts purchased within specific price ranges while reflecting the importance and strength of each level – as a region of resistance or support.
As the highlighted chart shows, buying activity has been very minimal compared to the current Ethereum price, suggesting that there is virtually no resistance to the altcoin’s upward movement. According to Martinez, the only “modest” resistance level ahead for Ethereum price is around the $4,540 level.
Data from IntoTheBlock shows that over 608,960 addresses purchased over 668,980 ETH tokens in the price range between $4,474 and $4,598. While this level of buying activity is relatively insignificant – as shown by the size of the dots in the highlighted chart – it appears to be the only major resistance area ahead of Ethereum price.
Martinez, however, mentioned that a bullish prognosis seems to be the strongest narrative for ETH at the moment. The crypto analyst expects it to stay that way as long as Ethereum price remains above the $3,560 demand zone. According to data from IntoTheBlock, 3.4 million addresses purchased a whopping 5.1 million tokens between $3,514 and $3,634, making the region a strong support zone.
Ethereum Price Overview
As of this writing, the price of ETH continues to hover around the $4,000 mark, reflecting a decline of almost 2% over the past 24 hours. According to data from CoinGecko, the price of the altcoin has increased by almost 10% over the past seven days.
The price of Ethereum on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
