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Ethereum Price Could Reach New All-Time High With Little Resistance, Analyst Explains Why

The Ethereum price seems to be finally picking up some momentum after several weeks of trailing the remarkable Bitcoin price performance. After kickstarting the week with sluggish price action, the acclaimed “king of altcoins” has returned to above the $4,000 mark for the first time since March.

Mirroring the current market climate, the Ethereum price has not exactly impressed this weekend, as it struggles to hold above $4,000. Nevertheless, a prominent analyst on the social media platform X believes the price of Ethereum looks primed to return to its all-time high of the last cycle.

Is A New All-Time High On The Cards For ETH?

On Saturday, December 7, popular crypto analyst Ali Martinez took to the X platform to share an interesting on-chain insight into the price action of Ethereum. According to the crypto pundit, the altcoin’s price appears to face zero barriers to reaching its current record high of $4,878 and potentially forging a new one.

This on-chain observation is based on the average cost basis of several Ethereum investors. The chart below outlines the distribution of tokens around the current Ethereum price, according to data from IntoTheBlock.

Ethereum price

Source: Ali_charts/X

The size of the dots corresponds with the token amounts purchased within specific price brackets while reflecting the significance and strength of each level — as a resistance or support region.

As observed in the highlighted chart, there’s been very minimal buying activity ahead the current Ethereum price, suggesting that there is barely any resistance for the altcoin’s upward movement. According to Martinez, the only “modest” resistance level that lies ahead for the Ethereum price is around the $4,540 level.

Data from IntoTheBlock shows that more than 608,960 addresses bought over 668,980 ETH tokens in the price region between the $4,474 and $4,598. Although this level of buying activity is relatively insignificant  — as shown by the dot size in the highlighted chart, it appears to be the only major resistance zone ahead of the price of Ethereum.

Martinez, however, mentioned that a bullish prognosis seems like the stronger narrative for ETH at the moment. The crypto analyst expects it to remain this way so long as the Ethereum price maintains its hold above the $3,560 demand zone. According to data from IntoTheBlock, 3.4 million addresses purchased a whopping 5.1 million tokens between $3,514 and $3,634, making the region a strong support zone.

Ethereum Price At Glance

As of this writing, the price of ETH continues to hover around the $4,000 mark, reflecting an almost 2% decline in the past 24 hours. According to data from CoinGecko, the price of altcoin is up by nearly 10% in the last seven days.

Ethereum price

The price of Ethereum on the daily timeframe | Source: ETHUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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