Ethereum News Today: Ethereum Eyes $4,900 Breakout as On-Chain Metrics Signal Strong Momentum

Ethereum is showing signs of a potential price breakout as on-chain analytics firm Glassnode highlights favorable conditions pointing toward a new all-time high of approximately $4,900 [1]. The analysis notes that while Ethereum is currently trading near the $3,862 level, its unrealized profits remain below the peaks observed during the March 2024 rally. At that time, ETH reached $3,980 with Relative Unrealized Profit at +2 standard deviations—often a sign of euphoric market behavior and heavy profit-taking. In contrast, the current Relative Unrealized Profit is only at +1 standard deviation, suggesting a more measured and potentially sustainable market environment [1].

This divergence in unrealized profit levels indicates that the market has not yet reached a stage of widespread profit-taking, leaving room for further price appreciation. Analysts suggest that the current rally could extend beyond the psychological $5,000 level before encountering significant resistance [1]. Open interest in Ethereum has also surged to the highest level among major altcoins, signaling growing investor participation and confidence. High open interest typically precedes price rallies by increasing liquidity and reinforcing market momentum [2].

Ethereum’s recent performance has been robust, with the price surging over 82% since late June. This upward trajectory has been supported by both on-chain metrics and positive macroeconomic sentiment. If current conditions persist, ETH could not only retest its previous all-time high but also potentially break through into new price territory [3]. Institutional interest has also increased, with inflows rising in recent weeks and reinforcing Ethereum’s position as a key macro trade [3].

Technical indicators further support the bullish case. Ethereum is currently holding above key support levels such as $3,300 and displaying signs of strong upward momentum. Analysts have cited potential price targets of $4,220 and $5,140, contingent on the preservation of critical support levels and continued favorable on-chain activity [2]. A breakout above the $4,000 level, which marks the March 2024 high, could validate the $4,900 target and open the door for further gains. Additionally, metrics like active addresses and transaction volumes are rising steadily, indicating increased network usage without the speculative fervor seen earlier in the year [3].

The broader market context is also supportive. Ethereum’s performance is closely linked to Bitcoin and overall risk appetite in global markets. As Bitcoin remains above $60,000, it provides a tailwind for Ethereum through the BTC/ETH pair. Moreover, Ethereum’s cross-market correlations with tech-heavy indices like the Nasdaq suggest that institutional investors may continue to rotate into crypto, further supporting ETH’s upside potential [3].

Sources:

[1] Blockchain.News

https://blockchain.news/flashnews/ethereum-eth-unrealized-profits-lag-despite-price-near-march-2024-highs-potential-implications-for-4-9k-eth

[2] U.Today

https://u.today/ethereum-to-5140-analyst-names-two-scenarios-for-eth-price-target

[3] CoinCentral

https://coincentral.com/ethereum-eth-price-smart-money-pulls-back-as-network-activity-soars/