Buckle Up: Ethereum ETH Price Primed to Challenge Previous ATH Above $5K

ETH Craters to All-Time Scarcity: Could This Spark a Price Surge to $3000 for Ethereum?

Ethereum has powered decisively through the psychologically crucial $3,000 threshold this week as a confluence of bullish factors propels its native ETH token upwards. However, the path to fresh all-time highs won’t come easy judging by intensifying indicators of potential near-term consolidation.


Ethereum’s ether (ETH) price has broken out of a bullish ascending triangle on the weekly chart per Kraken OTC analysis, pointing to a potential new all-time high around $5,200
Active supply of ETH shrinking as staking locks up coins, providing bullish backdrop along with anticipation of Ethereum upgrades like Shanghai
After high volatility, ETH decisively moved past $3,000 resistance as Bitcoin recovered towards $52K; spot ETH ETF hype and on-chain metrics fueling rally
Profit-taking pressure remains near ETH’s local highs as exchange reserves and whale transactions pick up, signaling potential consolidation
Divergent analyst price targets for ETH underscore uncertainty, but layer 2 growth and lower fees from planned upgrades serve as long-term catalysts

A key driver of building momentum is ETH’s clean breakout from an ascending triangle formation on higher time frame charts per analysis from Kraken’s OTC desk. Their technical take suggests an eventual measured move target around $5,200 – a new record peak. Multiple signs point to ETH strengthening its foundations for this next leg higher.

The network’s transition towards proof-of-stake and associated ETH staking lockups have markedly reduced active coin supply after last September’s Merge event. Lower inflationary pressure combines with soaring activity for Ethereum layer 2 scaling solutions to limit sell-side forces.


Upcoming upgrades like June’s Shanghai hard fork should further enhance efficiency and user growth with anticipated fee reductions. This prospect along with speculation around a long-awaited spot ETH exchange-traded fund (ETF) approval have re-energized buyer conviction.

ETH Price at Coingecko

Shorter-term however, indicators have emerged of potential turbulence en route to higher highs. After vaulting past $3K, ETH saw about $8.5 million worth of buyers’ positions liquidated, hinting at lingering uncertainty near recent peaks.

On-chain data also shows rising exchange reserves for Ether and a doubling of large transactions, likely evidence of increased whale accumulation. If heavyweight traders sense waning momentum, they could trigger choppy back-and-forth price action.

For now, analysts remain divided on just how far the Ethereum price run could last before requiring a breather. More skeptical firms like JPMorgan point to obstacles still hindering a spot ETF green light. But other experts eye a rally to $4K if such a product gets SEC authorization.

These divergent outlooks underscore the precarious balance ETH finds itself, not unlike Bitcoin’s own tug-of-war around the $50K threshold. Its multi-week chop likely shook out overheated leverage while building a base for the next impulse higher.

Ether appears primed to follow a similar script as short-dated technical oscillators reset and shake out less committed bulls. But ultimately network growth tailwinds should overpower any consolidation to pave the way for assaulting new all-time highs later in 2024.

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