Ethereum (ETH) has continued its strong upward momentum, climbing beyond $4,500 in recent sessions and approaching a new all-time high.
The second-largest cryptocurrency by market capitalization is showing signs of renewed investor optimism. However, whether it can surpass $5,000 will depend on maintaining key technical and psychological levels.
Ethereum Holders May Not Sell
Currently, about 97% of Ethereum addresses are in profit. Historically, when this percentage crosses the 95% mark, it signals a potential market top as investors begin realizing gains. In past cycles, this level often preceded short-term reversals as traders moved to secure profits.
However, Ethereum’s resilience amid these signals suggests a shift in investor behavior. Despite briefly entering the “profit saturation zone,” ETH managed to maintain its uptrend, which was supported by strong market-wide bullishness. This indicates that even though many holders are in profit, selling pressure may be limited, allowing the cryptocurrency to sustain its momentum in the near term.
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Ethereum Supply In Profit. Source: Glassnode
Ethereum’s macro outlook remains optimistic. The Moving Average Convergence Divergence (MACD) indicator recently registered a bullish crossover, signaling strengthening upward momentum. This shift marks a transition from consolidation to a potential breakout phase, often associated with extended price rallies.
Additionally, the indicator’s histogram continues to expand positively, reinforcing the view that bullish momentum is building. If this trajectory persists, Ethereum could see renewed inflows from traders and institutional investors, further propelling its climb. Maintaining momentum above $4,500 will be essential to secure confidence across the market.
Ethereum MACD. Source: TradingView
ETH Price Needs A Bounce
Ethereum’s price stands at $4,523, testing the $4,500 level as new support. This level must hold for ETH to advance toward the next key resistance at $4,775. A successful breakout here could set the stage for another leg higher.
Given the strengthening technical setup and bullish indicators, Ethereum could potentially rise past $4,775 to retest its all-time high of $4,956. Sustaining that move could open the door to a push beyond $5,000, marking a historic milestone for the altcoin king.
ETH Price Analysis. Source: TradingView
However, if investors start taking profits after the latest surge, Ethereum’s price could lose its footing. A drop below $4,500 may trigger a correction toward $4,222, invalidating the bullish outlook in the short term.
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