Two Crucial Signs Indicate Ethereum Might Reach $8,000 in Q4

Ethereum (ETH) is currently hovering near a pivotal threshold that market analysts believe could dictate its forthcoming trajectory.

At present, Ethereum is valued around $4,350, showing a 24-hour trading volume surpassing $41 billion, with a recorded decline of 2% over the past day and a 3% decrease over the last week.

Wyckoff Structure Indicates Breakout Potential

Technical analyst ZYN has recognized a Wyckoff accumulation pattern on Ethereum’s weekly chart. The analysis suggests that ETH has advanced through earlier phases and is currently in its concluding stage. Earlier this year, a “spring” and “test” occurred below $2,500. Since then, ETH has ascended towards a crucial resistance point at $4,750.

"$ETH Wyckoff accumulation is in its final phase. Ethereum just needs a weekly close above $4,750 and a new rally will start. My target is $8K by Q4 end and $10K by cycle top." — ZYN (@Zynweb3) Source: Twitter

The analyst predicts a target of $8,000 by the close of Q4 and $10,000 later in the market cycle. Previous resistance levels of $3,880 and $4,100 are now functioning as support.

Breakout from Falling Wedge Reinforces Optimism

Trader Tardigrade has reported a breakout from a falling wedge on the ETH weekly chart, following a strong upward movement earlier in the year which exhibited lower highs and lower lows. ETH has now broken through the upper limit of this pattern near $4,100.

This breakout is typically associated with continued upward momentum. Projections indicate a potential rise towards $6,500 to $7,000, provided current momentum persists. Notably, ETH has maintained support at the $4,100 level, which was previously resistance.

Cost Basis for Active Traders Approaches Price

On-chain insights shared by Crazzyblockk from CryptoQuant indicate that ETH is nearing the $4,280 “realized price” for highly active addresses, defined as wallets that have made over 100 transactions in the past 30 days. This level is perceived as a possible pivot point.

“This is a critical level to watch as it represents the average acquisition price.”

If ETH manages to rise above this threshold, it may indicate ongoing accumulation from this demographic. A failure to maintain this level could result in increased short-term selling.

Institutions Remain Active Buyers

Ash Crypto has pointed out significant market activity linked to large-scale accumulation. He noted that ETH has reverted to early October levels, while BlackRock’s ETHA fund acquired $1.4 billion in ETH during this timeframe. He also highlighted continuous liquidity actions, suggesting that substantial holders are actively purchasing ETH.

$4,240 has been identified as a short-term support level while $5,000 serves as immediate resistance. Surpassing $5,000 could pave the way for a rapid advance towards $6,000 based on the current order book dynamics.