- Ethereum struggles to break $4K resistance, despite bullish momentum and growing institutional demand for ETH.
- ETH faces volatility, dipping to $3,536 before recovering, with strong support at $3,700, but risks remain.
- Institutional inflows and strong on-chain metrics signal Ethereum’s potential for a $5,000 surge in the coming months.
The broader market has continued to exert bullish pressure on Ethereum (ETH), but the asset has not been able to break through the $4,000 mark. Ethereum saw an increase in demand after the US elections especially due to price appreciation due to Trump win. ETH last week attained an intraday high of $4,093 which was the first time the currency had traded at such levels since March 2024.
Nonetheless, the markets stabilized for a while, but plunged on Monday, making ETH lose over 7% of its value. The asset dropped to as low as $3,536 in the intraday before recovering slightly to trade at $3,715 at the end of the day. Sellers are ruling the market on Tuesday, and Ethereum dropped by another 2% with the bears taking it down to $3,521. But there was a glimmer of hope in Ethereum on Wednesday because the prices had surged by 6%.
Source: TradingView
Ethereum Struggles at $4,000
The price of Ethereum endured yet another rejection above $4,000 on Thursday, falling to as low as $3,988. The digital currency closed the day at $3,882, having only just creeped out of the red zone with a 1.26% gain. On Friday, there was a very small bounce back with ETH reaching $3,907 but the market is still quite volatile as buyers try to push ETH over the $4,000 barrier.
The price of ETH seems to have strong floor at $3,700 and this can be employed to reinforce the bulls if the price is not fluctuating a lot. Additional risks for ETH can be expected in case this level is broken, ETH may fall to $3,500. However, the majority of the experts still believe that ETH will retake and break the $4,000 mark very soon as the institutional buying continues.
Institutional Buying Boosts ETH
On-chain metrics also show the improvement with active addresses rising by 4.24% and new addresses adding 2.65%. Furthermore, the total zero-balance account has reduced by 4.06% which is an indication of enhanced activity on the Ethereum network. These on-chain metrics paint the picture that demand for ETH is still robust, and as more investors get into the project, the price of ETH may surge further in the next few months and hit $5,000.
Ether has been displaying robust fundamentals as more and more projects are developed on the Ethereum platform, and traders and analysts watch Chattanooga’s price moves anxiously. Institutional buying and positive on-chain signal paint the path for ETH in the long run. Currently trading at around $4,000, ETH looks set to rally, with institutions piling in and many people expecting the cryptocurrency to soar to new records.
