Ethereum Price Surge: Can ETH Break $5K After New ATH?

Ethereum's price is stealing the spotlight, flirting with its all-time high (ATH) near $4,800. With buzz around "Ethereum Price" and dreams of hitting $5,000.

Let’s unpack if ETH can keep climbing or face a dip, using technical charts and on-chain data. Buckle up for a clear, casual dive into the action!

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Ethereum’s Current Price Momentum

Ethereum (ETH) is on fire, hovering close to its ATH of $4,884. But is the "Price of Ethereum" ready to rocket past $5K or hit a speed bump?

The charts show a solid uptrend on longer timeframes, but warning signals like bearish divergences are flashing. Buyers must hold key levels to keep the "Ethereum $5K" dream alive.

Daily Chart: What’s Happening with ETH?

On the daily chart, ETH notched a slightly higher high at $4,884, just above its prior peak. That’s bullish, but the Relative Strength Index (RSI) isn’t vibing, it’s showing a bearish divergence, where price climbs but momentum lags. This classic signal hints at fading steam in the trend.

ETH’s chilling just below the ATH, inside an ascending channel. Key support sits at $4,400–$4,450. If that cracks, the Fibonacci retracement zone of $4,070–$3,900 aligns with the channel’s midline, making it a prime spot for buyers to jump in. 

Holding these levels keeps the "Price of Ethereum" on track for $5,000, per TradingView data.

Read Also: Ethereum Futures Surge: ETH Takes Over BTC Dominance

4-Hour Chart: Short-Term Signals

Zooming into the 4-hour chart, ETH spiked to $4,884, grabbing liquidity, then settled into consolidation. Like the daily, RSI shows bearish divergence, higher prices, weaker momentum. 

This screams that buyers might be running out of gas, even with new highs in the "Ethereum Price."

• Key Supports: Watch $4,477 (0.5 Fib) and $4,380–$4,311 (0.618–0.702 Fib levels). A break below could trigger a drop to $4,000.

• Bullish Case: ETH needs to reclaim $4,800 with strong volume to squash the divergence and aim for Ethereum $5K.

A slide below these supports could shift the short-term market to bearish, but a strong push past $4,800 keeps the bulls in charge.

On-Chain Data: What’s the Vibe?

Beyond price charts, on-chain metrics paint a fuller picture for "Ethereum Price" moves. ETH recently kissed ATH levels near $4,800–$4,900, with futures trading going wild. 

Tools like the Futures Volume Bubble Map show if speculation’s overheating or cooling, helping us gauge market risks.

Read Also: Ethereum Whales and Whale Transactions

Futures Volume: Hot or Not?

The latest data shows futures volume spiking as ETH hit its highs, with red bubbles on the Bubble Map signaling overheating. 

Historically, these red zones often mark local tops or volatile swings due to high leverage risking liquidations. In 2021, similar patterns led to corrections after ETH’s peaks.

• Red Flags: Overheated futures near $4,800 suggest a possible pullback, especially with RSI divergences backing this up.

• Green Zones: Cooling periods (green bubbles) often signal buying opportunities, setting ETH up for the next rally.

Right now, the derivatives market looks stretched, raising short-term volatility risks. Still, a surprise surge to a new ATH isn’t impossible if momentum shifts.

Historical Patterns and Future Outlook

Looking back, Ethereum’s All Time High moments often follow this script. In 2021, overheated futures preceded 10-20% drops post-ATH. 

Today, with the "Price of Ethereum" near $4,800, a dip to $4,100 is plausible if supports like $4,400 fail. But a strong hold above $4,800 could ignite the next leg up. ETH’s market cap hit $580 billion in late 2023, up 90% year-to-date. 

Layer-2 solutions like Arbitrum and Optimism boosted network activity, fueling optimism. Yet, whale sales near ATHs hint at caution. Rumored ETF approvals in 2024 could push the "Price of Ethereum" past $5,000 if they land.

Macro Factors Fueling ETH’s Run

What’s driving this "Ethereum Price" surge? Beyond tech signals, macro trends play a role. Bitcoin’s 2024 halving could lift the whole crypto market, including ETH. 

Ethereum’s Dencun upgrade, set for early 2024, aims to cut layer-2 costs, boosting adoption. Global rate cuts could also juice risk assets like crypto.

But risks loom. High leverage in futures markets could trigger liquidations if sentiment flips. Regulatory hurdles, like SEC delays on ETFs, might dampen hype. 

For "Ethereum $5K," bulls need to defend $4,400 and break $4,800 with conviction, while watching macro shifts.

Read Also: DBS Bank Launches Ethereum-Based Tokenized Notes

Conclusion

So, will Ethereum hit $5K? The uptrend’s strong, but RSI divergences and hot futures scream caution. 

A dip to $4,100 is possible if it supports crack, but holding $4,400 and smashing $4,800 keeps the bulls charging. With solid fundamentals, ETF hopes, and upgrades, "Ethereum Price" could hit $5,000 if momentum aligns.

FAQ

Why is the RSI divergence a red flag for Ethereum?

Because price is rising while momentum lags, hinting ETH’s rally could be losing steam.

What’s the key support level ETH must hold?

$4,400–$4,450 is the line in the sand, lose it, and ETH could slide toward $4,100.

How does the futures Bubble Map affect ETH price moves?

Red bubbles = overheated markets, often signaling tops and volatility. Green bubbles = cooling, hinting at buyer entry zones.

Can ETH still break $5K despite bearish signals?

Yes, if ETH reclaims $4,800 with strong volume, the path to $5K opens.

What role do macro and upgrades play in ETH’s run?

Bitcoin halving, rate cuts, and Ethereum’s Dencun upgrade all fuel bullish momentum, but ETF delays or whale sales can stall it.

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