The altcoin leader, and the world’s second-largest cryptocurrency, Ethereum (ETH) price is showing strong market momentum as it closes to its all-time high (ATH) of $4,953.73 today. In the past 24 hours, ETH has lost 6.87%, resulting in its market capitalization dropping to $552.32 billion.
Currently trading at $4,575.06 as per Etherscan with a trading volume of just over $66 billion, a critical question has been raised among the investors. Is Ethereum gearing up for a breakout, or are we seeing early signs of a short-term correction?
Ethereum On-Chain Insights
On-chain data reveals continued institutional interest in Ethereum through exchange-traded fund activity. ETF inflows reached $341 million on August 25, according to SoSoValue data, with total net assets under management crossing $30.5 billion. While temporary outflows were seen earlier this month, the rebound indicates confidence among large investors.
On the other hand, the active addresses on the Ethereum network, which has grown rapidly from 300K in May 2024 to around 432K, alongside ETH price action. Historical analysis indicates rising active addresses typically correlate with sustainable price advances due to increased network adoption and user engagement.
ETH Price Analysis
Looking at the technical charts, ETH price is consolidating after facing rejection near its all-time high. Additionally, the Bollinger Bands (BB) highlight expanded volatility, with the price recently hitting the upper band before experiencing a pull back.
The recent red candles and declining volume suggest short-term profit-taking by traders, rather than fundamental selling pressure. However, the broader uptrend remains intact, supported by higher lows since June. If bulls maintain buying pressure above the mid-Bollinger level that is around the $4,373 mark, it could result in another attempt toward uncharted territory for Ethereum.
Will Ethereum Hit A New High?
While the rejection near its ATH triggered a 6.87% pullback, strong on-chain fundamentals, including rising ETF inflows and healthy user activity, suggests a potential bullish turnaround. With this, the key levels to watch are $4,350 as near-term support and $4,950 as resistance.
If ETH price holds above support of $4,625 and demand increases, the next breakout could drive the price well beyond $5,000 mark, cementing a new all-time high for the second time this week. However, failure to sustain above that price point could invite correction toward the $4,350 range shortly.
Also Read: BitMine Expands Ethereum Treasury to 1.71M ETH Worth $7.9B
Disclaimer: The Crypto Times does not endorse or promote this digital asset in any manner. This article was created only for educational purposes. Make sure to “DYOR” as the market is highly volatile. New positions should be done by traders being careful and awaiting volume-backed breakouts.
