- ETH may encounter mild resistance, but a climb to $5,000 seemed almost certain.
- Rising confidence in the altcoin reinforced the bullish forecast.
The price of ether [ETH] According to analyst Ali Martinez, the price could soon reach $5,000. But the altcoin needs to break through the supply wall between $4,522 and $4,646.
A supply zone is a collection of purchase orders. In this case, the idea is to create a barrier that prevents the price from falling. Martinez, using IntoTheBlock data, noted that 600,000 addresses in that region bought 1.63 million ETH.
Source:
The season is already here
Therefore, the path was now a resistance for the cryptocurrency as some buyers might try to break even. While this could slow Ethereum’s bullish moves, the climb to $5,000 seemed all but certain.
AMBCrypto came to this conclusion after analyzing the Liquidation Heatmap. Simply put, the Liquidation Heatmap predicts price levels where large-scale liquidations could occur.
For the unfamiliar, liquidation occurs when a trader’s position is forcibly closed due to price fluctuations. It can also happen due to insufficient margin balance to cover financing costs.
Our analysis of HyblockCapital data shows that large-scale liquidations could occur if ETH reaches $4,205. However, a successful close above this price could see the value rise.
Source: HyblockCapital
For example, the chart below shows that the altco may not encounter major resistance below $4,310. Moreover, if ETH rises above 4,860, the run to $5,000 could become very easy.
Bearish aggression is fueling ETH’s rally
Another metric that AMBCrypto assessed to check the likelihood of a rally was the funding rate. The financing rate is the difference between the price of a perpetual contract and the spot price of a cryptocurrency.
According to Santiment’s data, Ethereum’s total funding rate was 0.068%. The positive funding rate implied that ETH was trading at a premium perp price above the index value.
The high value of the benchmark alongside the rising ETH price suggests that shorts are aggressive. Unfortunately, their aggression is not rewarded. Therefore, ETH’s price action is potentially bullish.
In addition to the events on the derivatives market, we also looked at the active addresses. At the time of writing, the number of active addresses on the Ethereum network stood at 537,000. This was a significant increase compared to the amount on March 10.
The increase in the number of active addresses indicates this growing interest and trust in ETH. While it also means that the network has become healthier, traders can also take this as a bullish signal.
Source: Santiment
Read Ethereum’s [ETH] Price forecast 2024-2025
In short, a combination of the evaluated metric corresponded to a price increase. However, ETH could experience some pullback as it targets a new all-time high.
But indicators showed that a potential retracement may not last long.