New ATH or Another Severe Correction?

TL;DR

• Analysts predict ETH could hit $5,000 or even $10,000, with key resistance at $3,750 signaling a potential breakout.
• Rising daily active addresses and positive network growth suggest increasing Ethereum adoption, supporting a bullish outlook.

Where’s ETH Headed Next?

The second-largest cryptocurrency was on a tear last week, with its price briefly surpassing $4,000 on December 6. This was the highest level witnessed since March 2024.

Since then, though, ETH started losing steam, tumbling to approximately $3,500 amid the latest market correction observed at the start of the new business week. In the past several hours, the bulls have prevented a further fall, pushing the price to the current $3,720 (per CoinGecko’s data).

Despite ETH’s wobbly performance as of late, multiple analysts remain optimistic that the asset has yet to record fresh peaks. The popular trader using the X moniker CoinMamba predicted a new all-time high of $5,000 before the end of 2024.

My target for $ETH is still $5k by the end of this year. Do what you will with that information..

— CoinMamba (@coinmamba) December 10, 2024

X user Skew also envisioned a potential pump for ETH if it reclaims the $3,750 resistance level. However, the trader remains rather pessimistic if the valuation drops below $3,500. 

Crypto Patel presented a bullish scenario, according to which ETH’s price may skyrocket to a new ATH of $10,000. The X user also assumed there is a chance for a potential crash to the $2,500-$2,800 range, describing it as “the perfect accumulation zone.”

What Are On-Chain Metrics Signaling?

Some essential indicators suggest that ETH could indeed be poised for an upside move. One example is the increase in Ethereum’s daily active addresses. According to IntoTheBlock, the figure has jumped by almost 7% on a 24-hour scale, surpassing 600,000. 

This resurgence usually suggests growing usage of the Ethereum blockchain, which, in turn, could lead to a price spike. 

Another metric on the rise is the Net Network Growth (a momentum signal “that gives a pulse of the true growth of the token’s underlying network”). It is up 0.30% daily, entering the bullish zone. 

On the other hand, the “In the Money” indicator, which measures the change in the number of ETH investors currently sitting on paper profits, is slightly down for the same period. As of writing these lines, around 89% of those exposed to the asset are in the green, while only 8% are underwater.