**Ethereum Holders Return to Profit, Boosting Chances of Rally to $4,000**
Ether (ETH) holders are back in the black, increasing the likelihood of a price rally to $4,000. However, sell pressure risks around the $3,800 resistance level could delay bullish momentum.
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**ETH Surpasses Active Realized Price**
Over the weekend, Ether’s price rebounded to $3,600, pushing its value above its active realized price. This key metric, currently at $3,545 according to Glassnode data, represents the average cost basis of ETH holders. Surpassing this level implies that the average ETH investor is no longer at a loss, which is significant for market sentiment.
Data from Cointelegraph Markets Pro and TradingView reveals that ETH’s price climbed 20% to $3,650 on Sunday, recovering strongly from a four-month low of $3,050 reached on November 4. The rally was supported by positive catalysts, including former President Trump’s promise of $2,000 tariff dividend payments and optimism surrounding a potential end to the US government shutdown.
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**Why Holding Above $3,500 Matters**
The return of average ETH holders to profitability is a meaningful relief that often signals bullish momentum. Historically, when Ether’s price breaks above this active realized price level, market sentiment tends to shift from fear to confidence. This reduces sell pressure from holders previously underwater, encouraging them to hold onto their assets.
For example, in January 2024, ETH briefly dipped below its active realized price before reclaiming it. This move preceded an 89% rally to $4,100 from $2,165.
Maintaining support above $3,500 is therefore crucial for the bulls, as it lays the foundation for a potential retest of the $4,000 mark.
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**Resistance Zone Near $3,800 Poses Challenges**
Investors currently hold about 4.2 million ETH at an average cost ranging between $3,600 and $3,815, creating a notable resistance zone in this price range. This concentration suggests many holders may opt to sell at breakeven, which could stall upward momentum.
Traders emphasize that ETH must flip the resistance between $3,700 and $3,900 into solid support to target higher price levels beyond $4,000.
Crypto analyst Ted Pillows noted on X (formerly Twitter), “ETH failed to reclaim the $3,700 level and is now going down. In case ETH is able to reclaim the $3,700 level, it’ll tap the $4,000-$4,100 liquidity zone.”
Likewise, Michael van de Poppe highlighted the importance of breaking through the $3,800-$3,900 area to trigger a move toward all-time highs, while fellow analyst Jelle stressed that bulls need to “step in further” and push prices back above $4,000 as soon as possible.
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**Institutional Accumulation Supports Bullish Outlook**
Adding to the positive sentiment, Tom Lee’s BitMine revealed accelerated ETH accumulation last week, acquiring an additional 110,288 Ether to its $12.5 billion treasury. BitMine aims to accumulate 5% of Ether’s total supply, signaling continued institutional interest.
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**Conclusion**
Ethereum’s recent price rebound above its active realized price marks a critical turning point for ETH holders, shifting many back into profit and reducing sell pressure. However, overcoming resistance near $3,800 remains key to unlocking further upside and potentially rallying to the $4,000 level.
As always, this article does not constitute investment advice. Trading and investment involve risk, and readers should perform their own research before making any decisions.
https://bitcoinethereumnews.com/ethereum/ethereum-price-reclaims-key-level-but-can-eth-break-3-8k-next/
