- Summary:
- Ethereum price is about 17 percent below its all-time highs, and crossing above $4,000 has just made a new ATH much more likely. Here's why.
ETH price rose past the $4,000 mark on Friday, underlining its newfound upward momentum at a time when the rest of the altcoin market has subsided. ETHUSD traded at $4,015 at the time of writing, up by 5.7% , with weekly gains of 11.5%.
Meanwhile, XRP, Tron and HBAR, which had typified the “altcoin rally” traded in the negative territory. XRP price was down by 1.1%, Tron was at -3.6% while HBAR was at -6.4% on the daily chart.
Notably, Ethereum’s resurgence has come at a time when Solana, its perceived “killer” is on a downward trajectory, with weekly losses of 0.97%. ETH price’s retest of the $4k mark is a significant psychological boost, having last touched that mark nearly eight months ago.
Furthermore, it raises the prospect of ETH breaking its record-high price of $4,878 set three years ago. Ethereum price’s upside has benefitted from its DeFi growth, whereby its Total Value Locked grew by 12% in the last seven days to $77.65 billion. If the trend continues, ETH could set a new record high price in the next two weeks.
Meanwhile, whale investors are accumulating large amounts of ETH, adding propulsion to the upside. IntoTheBlock reports that the number of transactions valued at $100k or more grew from 6,711 to 11,086 in the last seven days, with the total value of $78.26 billion.
ETH Price Prediction
On the chart below, the momentum on ETH price calls for further upside. The crypto coin will likely pivot at $4,015, with the buyers in control above that level. That could see the first resistance encountered at $4,032. However, a stronger upward momentum could break above that level and test $4,045.
Alternatively, the sellers will be in control if the price breaks below $4,015. In that case, the first support could come at $4000. A break below that level will invalidate the upside narrative. Also, that could drive the coin lower to test $3,990.
