Ethereum Approaches $4,400 Resistance; Breakout May Lead to $4,800 Amid Strong On-Chain Profitability Signals

• Ethereum rose from $2,400 to $4,190, nearing the $4,000–$4,400 resistance range with expanding bullish momentum.

• On-chain metrics indicate few holders are at a loss, with rising profitability and no extreme market conditions.

• A sustained breakout above $4,400 could push Ethereum towards $4,800, supported by favorable on-chain conditions.

Ethereum is approaching a critical resistance level, with bullish indicators suggesting a potential breakout. Learn more about its price action and on-chain metrics.

What is Ethereum’s Current Price Action?

Ethereum is ballooning toward a moment of resistance, following a long bullish run. Currently, it is challenging the $4,000–$4,400 resistance range, which has historically attracted strong selling pressure.

Price Action Approaches Multi-Year Resistance

According to data from CryptoOnchain, Ethereum has advanced from the $2,400 region to around $4,190 on the Renko 1% LTP chart. The asset is now challenging the $4,000–$4,400 resistance range, which has historically attracted strong selling pressure.

The MACD histogram moves into positive territory while expanding, indicating growing bullish momentum. A daily or weekly close over $4,400 with confirmation would open a path to test the all-time high of $4,800. Market participants are observing this area closely, as a clear movement from this zone will determine Ethereum’s upcoming market direction.

On-Chain Indicators Show Broad Holder Profitability

The normalized Heatmap data reveals that MVRV_norm is in deep red territory, near its upper historical range. This indicates many holders are in profit, which in past cycles has sometimes led to selling. However, the metric remains within a rally phase.

Supply_in_loss_norm is near historical lows, showing that few addresses are holding at a loss, limiting potential selling pressure. Realized_price_norm is climbing alongside market prices, suggesting new capital inflows and higher realized network value. Additionally, NUPL_norm is positioned in a high-positive zone, reflecting widespread profitability without entering peak euphoric levels.

Breakout Scenarios and Potential Targets

CryptoOnchain notes that if Ethereum breaks above $4,400 with sustained momentum, the price could target $4,800 in the near term. Medium-term conditions remain supportive as key on-chain metrics have not yet reached historically overheated levels such as MVRV above 3 or peak NUPL.

While profit-taking may increase as more investors move deeper into profit, current data indicates that selling pressure is still relatively weak. Market participants are watching for whether Ethereum can maintain its upward trajectory beyond the $4,400 mark, which could reaffirm the bullish structure and open the door for higher valuations.

Frequently Asked Questions

What is the significance of the $4,400 resistance level for Ethereum?

The $4,400 resistance level is crucial as it has historically attracted selling pressure. A sustained breakout above this level could indicate a strong bullish trend.

How do on-chain metrics affect Ethereum’s price?

On-chain metrics provide insights into holder profitability and market sentiment, which can influence price movements. Positive metrics suggest a bullish outlook.

Key Takeaways

• Ethereum is nearing a critical resistance level of $4,400: A breakout could lead to further price increases.
• On-chain metrics indicate strong holder profitability: This suggests limited selling pressure in the near term.
• Market participants are closely monitoring price action: The direction beyond $4,400 will be pivotal for future trends.

Conclusion

In summary, Ethereum’s approach to the $4,400 resistance level, coupled with favorable on-chain metrics, suggests a potential breakout towards $4,800. As market participants remain vigilant, the upcoming price movements will be critical in determining Ethereum’s trajectory.