Emily Walker
After a period of underperformance compared to Bitcoin, Ethereum seems to be gaining some traction. Starting the week on a low note, the well-known “king of altcoins” has reclaimed the $4,000 threshold for the first time since March.
Despite this progress, Ethereum’s price has not made significant gains over the weekend, struggling to maintain its position above $4,000. Still, a notable analyst on the platform X is optimistic, believing Ethereum is well-positioned to potentially reach its previous all-time high.
Could Ethereum Reach New Heights?
On December 7, crypto analyst Ali Martinez shared insights via the X platform regarding Ethereum’s price dynamics. He noted that the current price faces minimal obstacles in reaching its previous peak of $4,878 and may even set a new high.
This analysis is grounded in the average investment cost of various Ethereum holders. The accompanying chart illustrates the token distribution relative to Ethereum’s current price, based on data from IntoTheBlock.
The size of the dots on the chart indicates the volume of tokens bought at different price levels, highlighting areas of potential support or resistance.
The analysis shows there has been little buying activity around the current price of Ethereum, implying there is minimal resistance to its upward trend. The only notable resistance appears to be around $4,540, according to Martinez.
Data reveals that over 608,960 addresses acquired more than 668,980 ETH in the range of $4,474 to $4,598. While this level of buying is relatively small, it marks the primary resistance zone that Ethereum must navigate.
Martinez also expressed that the outlook for ETH remains bullish, especially as long as it stays above the $3,560 demand area. IntoTheBlock data indicates that 3.4 million addresses bought approximately 5.1 million tokens between $3,514 and $3,634, establishing this zone as a solid support level.
Current Ethereum Price Overview
Currently, Ethereum’s price is hovering near $4,000, reflecting a slight decline of nearly 2% in the last 24 hours. However, over the past week, the altcoin has seen an increase of almost 10%, according to CoinGecko.