According to popular cryptocurrency analyst Ali Martinez, the price of Ethereum (ETH) could soon reach up to $5,000. However, the altcoin may need to surpass the supply wall between $4,522 and $4,646. Utilizing data from IntoTheBlock, Ali Martinez noted that 600,000 addresses purchased 1.63 million ETH within the mentioned region.
Current Data on ETH
Therefore, the path that some buyers are trying to reach their break-even point has now become a resistance for the cryptocurrency. Experts believe that this situation could slow down Ethereum‘s upward steps, yet a rise to $5,000 is anticipated. This could also result from insufficient margin balance to cover the funding fee. According to data from HyblockCapital, if ETH reaches $4,205, significant liquidations could occur. However, a successful close above this price could lead to further increases in value.
The chart shared by the expert suggests that the altcoin might not encounter significant resistance below $4,310. Moreover, if ETH surpasses $4,860, the rise to $5,000 could be much easier. Another measure that experts could use to hint at whether the rise in the altcoin will continue is the funding rate. The funding 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%. A positive funding rate implies that ETH is trading at a premium over its index value.
Active Addresses on Ethereum
In addition to the rising ETH price, a high metric could indicate that short positions are aggressive. For this reason, ETH’s price movement could potentially signal an uptrend. At the time of writing, the number of active addresses on the Ethereum network was 537,000. This number was a significant increase from the count on March 10th. The increase in active addresses shows growing interest and confidence in ETH. This also means that the network is becoming healthier, which investors might see as a bullish signal.
