Ethereum (ETH) Price Shows Strong Weekly Performance as Price Tests Key Levels

TLDR

Ethereum hovering around $4,000 resistance level with strong weekly close
ETH gained 62% over past year, lagging behind some other cryptocurrencies
Analyst Pentoshi notes ETH had highest weekly close of the year and sees limited resistance to new ATH
Crypto analyst CryptoPoseidonn projects potential rise to $6,000-$11,400 based on Fibonacci levels
ETH fundamentals show increased on-chain activity and active addresses during recent rally

Ethereum’s price has reached a critical juncture as it tests the $4,000 resistance level, supported by increasing trading volume and on-chain activity. The cryptocurrency’s recent price movement has drawn attention from market participants and analysts who are closely monitoring technical indicators and market metrics.

Data from major cryptocurrency exchanges shows Ethereum trading at $3,847 as of the latest market update, representing a 3.9% decrease in the past 24 hours. Despite this short-term pullback, the cryptocurrency has maintained a position near the important $4,000 price level.

Over the past year, Ethereum has recorded a 62% increase in value, according to data from CoinGecko. This performance, while positive, has not matched the gains seen in some other digital assets during the same period, including Bitcoin, Solana, and XRP.

Market analyst Pentoshi recently highlighted the importance of Ethereum’s structural changes in the market. Through social media platform X, Pentoshi pointed out that Ethereum has achieved its highest weekly close of the year, suggesting building momentum in the current market cycle.

Much like this thread with BTC, $ETH is having structural changes as well as the beginning of consistent and large ETF flows.

It just put in a HH, and had it’s highest weekly close of the year. There is a not much resistance from here to ath, which should act as a magnet. Above… https://t.co/vvWzu5cOa9 pic.twitter.com/FFZSVxCTsB

— 🐧 Pentoshi (@Pentosh1) December 9, 2024

The launch of spot Ethereum exchange-traded funds (ETFs) has introduced a new dynamic to the market. These investment vehicles have consistently attracted substantial inflows, indicating growing institutional interest in the cryptocurrency.

Technical analysis from crypto analyst CryptoPoseidonn suggests multiple price targets based on Fibonacci extension levels. According to the analysis, these levels project potential prices of $6,000 at the 1.272 extension, $7,400 at the 1.618 extension, and $11,400 at the 2.618 extension.

$ETH is about to break out of its 4-year, 1,460-day range to the upside.

Much higher, far beyond your worst nightmares. pic.twitter.com/BjPoUEQ3RD

— Poseidon (@CryptoPoseidonn) December 8, 2024

Trading patterns on shorter timeframes have also caught the attention of market observers. Analyst Satoshi Flipper has identified an ascending channel formation on the 4-hour chart, suggesting the possibility of a move toward $4,400 if current support levels hold.

On-chain metrics provide additional context to the price action. Data shows an increase in both active addresses and large-value transactions during the recent price rally, indicating broader market participation.

The $4,000 price level represents a psychological barrier that has historically attracted increased trading activity. Market data shows concentrated order books around this price point, suggesting traders are positioning for potential price movement.

Trading volume across major exchanges has shown an uptick as the price approaches this key level. This increased activity typically indicates heightened market interest and can precede price movement in either direction.

Recent market data reveals that spot trading volumes have risen across multiple exchanges. This metric often serves as an indicator of genuine market interest rather than leverage-driven price action.

Technical indicators on daily and weekly timeframes show building momentum. The weekly chart, in particular, displays a series of higher lows, a pattern often associated with sustained upward price movement.

Order flow analysis indicates accumulation at current price levels. This pattern suggests market participants are building positions despite short-term price fluctuations.

Market depth data shows improving liquidity conditions around current price levels. This metric is important for supporting stable price movement and reducing the impact of large trades.

The latest market data shows Ethereum’s price continuing to test the $4,000 level while maintaining support above $3,800, with active trading continuing across major exchanges.