The actual price of Ethereum with the upper range at 5.2K USD reflects levels seen at the peak of the bull market in 2021, raising expectations of an explosion.
The influx of funds into exchanges has increased and rising activity suggests a potential for profit-taking.
Ethereum [ETH] is hovering on the brink of a major breakout, with the actual price range hitting 5.2K USD — reflecting levels seen at the peak of the bull market in 2021.
On-chain indicators indicate strong demand, sparking hopes for a price increase beyond 5,000 USD.
But as market dynamics change, investors wonder: Can Ethereum reclaim its former glory, or are current conditions reshaping its trajectory?
How the actual price will affect the current cycle.
Source: CryptoQuant
The actual price of Ethereum with the upper range at 5.2K USD at the time of writing is an important indicator to understand potential market movements.
This metric, tracking the average price at which each unit of ETH last moved, plays a crucial role in determining market trends.
According to TinTucBitcoin's view of CryptoQuant data, the current price alignment reflects the peak of the bull market in 2021, when the actual price range coincided with a spectacular price surge.
History shows that these upper range levels signal overheating or strong bullish trends, often preceding significant price movements.
Is profit-taking imminent?
The market is displaying mixed signals. The chart of active addresses reveals a 10-15% increase in user participation over the past week, indicating heightened network activity and investor engagement.
At the same time, trading volume has also increased by nearly 20%, indicating enhanced liquidity and trading momentum.
However, the surge in inflow into exchanges, up 25%, raises concerns about potential profit-taking behavior.
Source: IntoTheBlock
Historically, such increases in inflows suggest that investors may be preparing assets for sale, especially when accompanied by heightened activity.
This pattern corresponds to previous market peaks, where increased participation coincided with short-term corrections.
Source: Santiment
This data highlights a delicate balance — while strong participation and trading volume signal optimism, the inflow suggests caution. If the inflow maintains, attention needs to be paid to potential downward pressure.
Whether the market will consolidate or face a correction will depend on the resilience of prices in the upcoming sessions and broader sentiment changes.
Market sentiment and the path ahead.
Recent data reveals a shift in sentiment as Ethereum approaches significant levels. The surge in new addresses is overshadowed by increased inflow into exchanges, signaling that investors may be capitalizing on profits.
With rising price volatility, a deeper correction could occur if market participants start to withdraw from positions at these high levels.
As Ethereum faces key technical resistance, understanding whether this surge is a sustainable rally or a final push before a larger pullback will be crucial in assessing market stability.
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