On Sunday, Ether (ETH) heralded a new era in the crypto market by breaking the $4,900 barrier on Coinbase at 5:40 p.m. UTC, eclipsing its previous all-time high of $4,867 set on November 8, 2021. This significant price surge marks a turning point for ETH as it enters “price discovery,” a phenomenon where assets explore new heights without the limitations of historical resistance levels.
To illustrate the impact of this price movement, the five-year ETH-USD price chart from TradingView underscores a robust breakout; ETH has finally eclipsed its 2021 high after a protracted period of consolidation. With no historical ceilings to reference, traders find themselves in uncharted territory, guided only by market psychology and order flow.
Zooming in, the five-day chart provides clarity on the recent price action. After a swift ascent from the mid-$4,700s, ETH surged through $4,900, peaking at an intraday high of around $4,946.90. As of 6:48 p.m. UTC, the last recorded price stood at approximately $4,941.57. This pattern reflects classic breakout behavior, signaling that buyers successfully absorbed supply near the former resistance level before driving prices to new heights.
Analyst Miles Deutsher highlighted a pivotal shift in market dynamics: “BTC is exhausted, ETH isn’t.” This statement encapsulates the contrasting momentum between Bitcoin and Ether. While Bitcoin’s recent rallies have faltered near previous highs, Ether’s breakthrough suggests sustained bullish sentiment. When market experts declare an asset “exhausted,” it typically indicates dwindling upside attempts, with sellers persistently resisting upward movements. Conversely, an asset that “isn’t” exhausted reflects vitality, marked by robust follow-through and active dip-buying.
Crypto analyst Crypto Rover emphasized the significance of exchange reserves, denoting the cryptocurrencies held in centralized exchange wallets. A downward trend in these reserves implies a decreasing supply available for immediate sale. If demand rises amid a diminishing liquid supply, prices can skyrocket as buyers bid higher to reclaim coins from exchanges. This situation establishes a “supply shock,” a setup where diminished availability can amplify price movements, particularly as momentum gains traction.
Michaël van de Poppe raised a cautionary note regarding the weekend breakout. He pointed out the unusually large weekly candle and noted that weekend surges often retrace when liquidity normalizes at the beginning of the week. The rationale behind this observation is straightforward: with thinner order books on weekends, price movements can extend more easily. However, as more liquidity returns on Monday, there is often a retest of the breakout area, confirming it as newfound support. This means a pullback toward the breakout zone would not necessarily invalidate the larger bullish momentum apparent in the five-year chart.
