Ethereum (ETH) is holding steady around the $4,000 mark as buyers struggle to build momentum and push beyond resistance levels. Despite recent struggles and a significant pullback earlier in the week, some analysts have predicted ETH could surge to $5,000 due to growing institutional demand. Ethereum (ETH) Price Action: A Recap Ethereum (ETH) has struggled to move beyond $4,000 as it faces considerable resistance, with buyers pegged back by selling activity at upper levels. ETH has been bullish since the US elections, with demand increasing substantially as markets surged following Donald Trump’s victory. ETH’s bull run peaked last week, reaching an intraday high of $4,093 before settling at $4,003, a level not seen since March 2024. However, sentiment waned over the weekend as the price registered a marginal drop on Saturday and fell to $3,999. ETH registered a marginal increase on Sunday to reclaim $4,000 and settle at $4,007. Source: TradingView However, markets collapsed on Monday as they faced a sudden pullback. As a result, ETH plummeted over 7%, falling to an intraday low of $3,536 before recovering to reclaim $3,700 and settle at $3,715. Sellers retained control on Tuesday as the price dropped over 2%, hitting a low of $3,521 before settling at $3,630. Sellers attempted to drive ETH below $3,500 on Wednesday as it fell to an intraday low of $3,558. However, it recovered from this level as sentiment changed, registering an increase of almost 6% and settling at $3,834. ETH attempted to go above $4,000 on Thursday as it reached an intraday high of $3,988. However, it lost momentum after reaching this level and ultimately settled at $3,882 after registering an increase of 1.26%. Buyers retained control on Friday, and ETH registered a marginal increase to $3,907. In the current session, ETH is marginally up as buyers look to build momentum and move towards $4,000. What Next For Ethereum (ETH)? So, where does Ethereum (ETH) go from here? ETH is facing considerable resistance at $4,000, a level it has been unable to conquer as yet. Despite its recent struggles, analysts are confident ETH can surpass $4,000 and even hit $5,000 as institutional demand for the asset grows. Looking at the price chart, we see ETH has support at around $3,700. If sellers overwhelm this level, ETH could drop to $3,500. On the other hand, if buyers retain control and build enough momentum, a move beyond $4,000 is a realistic scenario. Analysts favor the latter scenario, with some predicting an unprecedented surge that could take ETH beyond $5,000. This prediction is backed by a significant spike in on-chain activity and a substantial increase in inflows to the new Ethereum ETFs. Ethereum funds reported $1.2 billion in inflows from investors as ETH emerged as a viable alternative to Bitcoin (BTC). According to CryptoQuant, renewed investor demand could take ETH well beyond $5,000. “Based on valuation metrics, ETH could be heading above $5,000 if current demand and supply dynamics continue.” CryptoQuant also noted the spike in on-chain activity, with daily transactions hovering between 6.5 million and 7.5 million for the current year, compared to around 5 million during the previous year. “Higher network activity on Ethereum signifies increased usage and demand for the network’s capabilities, reflecting growing adoption of decentralized applications.” Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
