The crypto markets appear to be coping with the recent selling pressure within the markets that had temporarily covered the markets under bearish clouds. While Bitcoin was speculated to lose the $95,000 support after just one test, the sluggish behaviour of Ethereum has also raised many concerns. Meanwhile, the latest recovery of the BTC price has revived the possibility of a healthy ascending trend with the ETH price, and the second-largest token continues to follow the star crypto pretty closely.
The ETH price has been maintaining a steep ascending trend since the start of the quarter, and hence, despite the bearish interference, it is believed to slice through the important resistance levels. The major reason for the continuation of the bullish momentum this upcoming week is the strong on-chain metrics, like a massive rise in the daily active addresses.
The Intotheblock data shared by popular analyst Ali, the active addresses are up by over 4.24%, while the new addresses surged by 2.65%. Meanwhile, the zero-balance addresses have plunged by over 4%, suggesting that market participants are optimistic about the upcoming trend. With this, the ETH price has surged above the crucial resistance levels between $3700 and $3810, wherein more than 3 million wallets have bought over 4.6 million ETH.
Therefore, the traders are now confident of a potential weekend jump, which may help the price to break $5000 as demand and supply dynamics strengthen. The end of the sluggish behaviour of the ETH price can be determined by the growing strength of Ethereum against Bitcoin. The ETH/BTC pair is stuck within a descending parallel channel, and regardless of a rebound, the levels do not display any possibility of a steep rise.
As seen in the above chart, the weekly ETH/BTC pair has failed to rise above the average bands of the channel with a rise in the bearish activity. Moreover, the bearish pattern remains intact since Q4 2022, suggesting the second-largest token failing to trade independently. Therefore, it is required for the BTC price to rise above the current ATH, which may help the ETH price to not only cross $4000 but also achieve the important resistance at $4200. This move may slightly increase the strength of Ethereum compared to Bitcoin, which could compel the ETH/BTC to surpass the average levels of the band and eventually elevate close to the resistance.
Back in 2021, the ETH/BTC broke above the consolidation and soared high to mark highs which enabled the price to mark a new ATH. Therefore, a breakout of the ongoing consolidation may also have an equal impact over the Ethereum (ETH) price rally, which may rise and reach a 5-digit level in the upcoming bull run.
