The second-largest cryptocurrency by market capitalization is displaying strong technical and sentiment-driven momentum, suggesting that a major breakout could be imminent.
Ethereum Holders Stay Confident Despite Profit Saturation
On-chain data reveals that roughly 97% of Ethereum addresses are currently in profit. Historically, when this number exceeds 95%, markets often experience pullbacks as traders secure gains.
However, this time appears different. Despite entering the so-called “profit saturation zone”, Ethereum’s price has held firm above key supports, indicating that long-term holders are resisting the urge to sell.
Notably, Ethereum has room to climb higher, a sign of maturing market behavior. The broader bullish sentiment across the crypto market has provided additional support, allowing ETH to maintain its uptrend.
ETH Price Analysis: Rising Wedge Signals a Big Move Ahead
The 3-hour ETH chart shows price action consolidating within a rising wedge pattern. This setup often precedes an explosive move, and the direction will depend on how Ethereum reacts at the wedge boundaries.
If bulls manage to sustain momentum above the $4,500–$4,600 resistance zone, ETH could break upward toward the next major target at $5,000, representing a 9.3% gain from current levels.
However, if Ethereum fails to hold above $4,450, a bearish breakdown from the wedge could trigger a correction toward the $3,850–$3,900 zone, marking a potential 14.4% downside.
Source: TradingView
Indicators Turn Bullish: MACD and RSI Support the Rally
The MACD indicator has flipped bullish, with the MACD line crossing above the signal line, indicating rising momentum. This crossover often precedes strong price expansions, especially when confirmed by volume.
The Relative Strength Index (RSI) currently sits near 63, suggesting that ETH is not yet overbought. This leaves ample room for another leg upward before facing major resistance.
As long as the RSI remains below 70 and the MACD maintains its upward trajectory, Ethereum’s short-term outlook remains firmly bullish.
ETH Poised for a Major Move
Ethereum is at a crucial inflection point. A decisive break above $4,600 could quickly propel prices toward the psychological $5,000 level, while failure to hold current support may invite a steep pullback.
With the MACD turning bullish and investors showing strong conviction, the probability of an upside breakout appears higher.
