CryptoQuant, a prominent blockchain analytics platform known for its institutional-grade cryptocurrency market analysis, has suggested Ethereum (ETH) could surpass the $5,000 mark based on its proprietary price band analysis.
The South Korea-based firm, which provides data-driven insights to institutional investors and traders, bases this prediction on what they call the “realized price upper band” – a technical indicator that merits careful explanation. The realized price itself represents the average price at which all Ether tokens last moved on the blockchain, essentially capturing the average cost basis of all ETH holders. CryptoQuant then creates bands around this realized price, with the upper and lower bands representing statistical boundaries of price movement based on historical trading patterns.
Currently, this upper band sits at $5,200, matching levels seen during the cryptocurrency’s 2021 bull market peak. The firm’s analysis shows three key levels: the upper band at $5,200, the current trading price of $3,920, and the realized price of $2,300, with a lower support band at $1,100. According to CryptoQuant, this positioning within their price bands, combined with what they describe as strengthening market dynamics, suggests potential for significant upward movement.
The price action in Ethereum tells a compelling story of volatility and resilience throughout 2024. The year-to-date chart shows ETH has navigated several significant price swings, with the most notable surge occurring in late November when the cryptocurrency broke above the $3,500 level.
Looking at today’s trading (Dec. 13), Ethereum is exhibiting characteristic intraday volatility around the $3,920 mark. After reaching a peak near $3,965 during the mid-afternoon trading session, the price has settled into a narrower range between $3,910 and $3,925. This consolidation follows a broader upward movement that began in the early morning hours when the price found support at $3,870.
The current price level represents a significant recovery from the mid-summer lows when Ethereum briefly traded below $2,500, and the yearly chart demonstrates that despite periodic pullbacks, Ethereum has maintained an overall upward trajectory, particularly in the fourth quarter of 2024.
Featured Image via Pixabay
