Ethereum’s price has been a bit sluggish lately, but there’s reason for optimism. After a slow start to the week, it’s back above $4,000 – the first time since March. While it’s struggling to stay there, one analyst thinks a new all-time high is on the horizon.
Is $4,878 (and Beyond) in Ethereum’s Future?
Crypto analyst Ali Martinez recently shared some interesting insights on X (formerly Twitter). He believes Ethereum faces almost no obstacles to hitting its previous all-time high of $4,878, and potentially even surpassing it.
This prediction is based on on-chain data, specifically the average cost basis of Ethereum investors. A chart from IntoTheBlock shows the distribution of ETH tokens across different price ranges. The size of the dots on the chart represents the amount of ETH bought at those prices, indicating support and resistance levels.
The chart reveals minimal buying activity just above the current price, suggesting very little resistance to further price increases. Martinez points to a relatively minor resistance level around $4,540. While over 600,000 addresses bought ETH in the $4,474-$4,598 range, the volume is small compared to other levels, making it a weak barrier.
Strong Support and a Bullish Outlook
Martinez’s bullish outlook hinges on Ethereum staying above the $3,560 support zone. Data shows that 3.4 million addresses bought a massive 5.1 million ETH tokens in the $3,514-$3,634 range, making it a very strong support level. As long as this holds, the path to higher prices seems clear.
Current Ethereum Price
At the time of writing, ETH is hovering around $4,000, down about 2% in the last 24 hours but up nearly 10% over the past week.
