What Ethereum needs to push over $ 4000

The top altcoin appears to be teasing the market for the past few days with hopes of surpassing $ 4000. However, the same has not yet been broken. However, with Bitcoin over $ 60,000, the anticipation of the price of Ethereum has also increased. When Ethereum oscillated near $ 3900, this is what the coin’s upward movement looked like.

Steady growth upwards

The price of ETH has jumped to over USD 3,800, and the move from the July lows below USD 2,000 can in part be traced back to defi projects that amass more Total Value Locked (TVL) and the disinflation mechanism introduced in EIP-1559 . The top altcoin seems to be slowly gaining momentum over the past month as the network’s core developers make steady strides towards Ethereum 2.0.

With consumer price index data highlighting another month of rising prices in September, it seemed like macroinflation would continue to fuel crypto space.

According to the EIP-1559, however, ETH’s protection against inflation has increased further with the burning of fees. However, Defi’s rise last fall and the growing public interest in NFTs have created issues such as network congestion that the team is still struggling with after the move.

The path ahead lacks this crucial element

It is noteworthy that the active addresses of ETH have steadily increased since the beginning of October. There has also been a surge in Ethereum’s open interest, which at the time of writing was a monthly ATH. In fact, the global open interest of ETH options after Strike highlights that the highest number of option defaults is set for October 29th with calls at a level of $ 5,000.

Source: Skew

While these were all subtle signs of the run of ETH, there appeared to be a shortage of FOMO for the past week, which is possibly the only thing keeping ETH from $ 4,000 and up. It is noteworthy that the number of ETH receiving addresses remained well below the annual average.

Additionally, the number of transactions was in line with January 2021 levels. It seemed like ETH needed a boost from retail investors, which are critical to unleashing rallies over key resistance.

Source: Glassnode

But here is the good news

The good news, however, was that institutional investors were bullish on Ethereum, with capital inflows rising and ETH reserves on exchanges seeing outraged outflows. Notably, over 400,000 ETH has been withdrawn from Coinbase, which depleted the currency reserves, fueling a supply crisis story that was exactly what ETH needed for a price hike.

Source: CryptoQuant

While Ethereum was trading at $ 3,880 at the time of writing, given the metrics above, it seemed like $ 4,000 wasn’t far off now.

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