Ethereum (ETH) finally broke past the $4,000 resistance after months of consolidation below the level, and on-chain metrics are signaling that the asset is poised to hit new record highs.
Specifically, the second-ranked cryptocurrency by market capitalization is showing minimal resistance on the way up while maintaining strong support.
To this end, ETH is facing modest resistance around $4,540, with the asset recording a strong demand zone at $3,560, offering a solid foundation for a possible price breakout, according to on-chain data sourced from IntoTheBlock as shared by cryptocurrency analyst Ali Martinez in a December 7 X post.
“There is nothing preventing Ethereum from reaching new all-time highs. The only modest resistance zone ahead is around $4,540,”Martinez said.
Ethereum’s In/Out of the Money Around Price. Source: IntoTheBlock
The analysis is based on ‘Ethereum’s In/Out of the Money Around Price,’ which shows that about 89% of ETH holders are ‘in the money’ at the current price of around $3,990. A demand zone between $3,535.55 and $3,588.88 supports stability and includes over 11.6 million ETH purchased by 1.3 million addresses.
On the other hand, the resistance zone around $4,540 to $4,579 is relatively small, involving just 600,936 ETH held by fewer than 61,000 addresses. This suggests that once Ethereum surpasses $4,540, it could move rapidly toward new highs, with limited opposition from sellers.
Ethereum’s path to $10,000
At the same time, on December 7, a cryptocurrency analyst with the pseudonym Captain Faibik suggested that technical indicators show Ethereum has broken out of a massive triangle pattern on the weekly time frame, signaling the start of a potential 2025 bull run after a prolonged consolidation phase.
If this move is sustainable, the analyst suggested that Ethereum might face a possible midterm target of $10,000.
Ethereum price analysis chart. Source: CryptoCove
Part of Ethereum’s bullish sentiment is tied to the general crypto market rally initiated by optimism around Donald Trump’s election and his anticipated pro-crypto policies. At the same time, the cryptocurrency spot exchange-traded fund (ETF) is also witnessing record capital inflows.
Notably, on December 5, Ethereum ETFs recorded a historic $428 million inflow—the largest single-day inflow ever. This surge points to growing institutional confidence in Ethereum.
ETH ETF capital inflow. Source: Bloomberg
Besides the technical aspects, Ethereum’s price growth will likely be influenced by ongoing network development. In this case, Ethereum’s All Core Developers approved EIP-7691: Blob Throughput Increase, advancing plans for Pectra (Prague-Electra), the network’s most significant upgrade since The Merge.
EIP-7691 is anticipated to boost scalability by increasing blobs per block, which is essential for layer-2 solutions. After the 2025-2026 upgrade, the target and maximum blobs will rise to six and nine, potentially enhancing Ethereum’s efficiency and data capacity.
Ethereum price analysis
Ethereum was trading at $4,002 by press time, rallying almost 2% in the last 24 hours. On the weekly chart, the asset is up about 10%.
ETH seven-day price chart. Source: CoinMarketCap
At the current valuation, Ethereum is showing bullish momentum both in the short and long term, as highlighted by the fact that ETH is trading above its 50-day ($3,029) and 200-day ($2,927) simple moving averages (SMA). However, momentum indicators, led by the relative strength index (RSI), signal overbought conditions, suggesting a potential short-term pullback.