The crypto markets appear to be able to withstand the recent selling pressure within the markets, which temporarily shrouded the markets under bearish clouds. While there was speculation that Bitcoin would lose the $95,000 support after just one test, Ethereum’s sluggish behavior has also raised many concerns. Meanwhile, the latest recovery in BTC price has revived the possibility of a healthy uptrend with ETH price, and the second-largest token continues to track the star crypto quite closely.
ETH price has maintained a steep uptrend since the beginning of the quarter and is therefore believed to break the key resistance levels despite the bearish interference. The main reason for the continuation of the bullish momentum in the coming week is the strong on-chain metrics, such as a huge increase in the number of daily active addresses.
The Intotheblock data shared by a popular analyst Aliactive addresses have increased by more than 4.24%, while new addresses have increased by 2.65%. Meanwhile, zero-balance addresses have fallen by more than 4%, indicating market participants are optimistic about the coming trend. This has pushed the ETH price above the crucial resistance levels between $3700 and $3810, with over 3 million wallets purchasing over 4.6 million ETH.
Therefore, traders are now confident of a possible weekend bounce, which could help the price break the $5,000 mark as supply and demand dynamics strengthen. The end of the sluggish behavior of the ETH price may be determined by the growing strength of Ethereum against Bitcoin. The ETH/BTC pair is stuck in a descending parallel channel, and regardless of a rebound, the levels do not show any possibility of a steep rise.
As seen in the chart above, the weekly ETH/BTC pair has failed to rise above the channel’s average bands, with a rise in bearish activity. Moreover, the bearish pattern remains intact since the fourth quarter of 2022, indicating that the second largest token is failing to trade independently. Therefore, it is necessary for the BTC price to rise above the current ATH, which could help the ETH price not only cross $4000 but also reach the important resistance at $4200. This move could slightly increase Ethereum’s strength compared to Bitcoin, which could force ETH/BTC to surpass the band’s average levels and eventually move close to resistance.
In 2021, ETH/BTC broke above the consolidation and rose high to highs, allowing the price to mark a new ATH. Therefore, a breakout from the ongoing consolidation could also have an equal impact on the Ethereum (ETH) price rally, which could rise and reach five-digit levels in the upcoming bull run.