Ethereum may collapse if the crypto market does not recover

Digital asset market experts note: Ethereum ETH $4,059.07 Bridged Ether (StarkGate) -1.58% Market capitalization $98.59 million VOL. 24 hours $2.25 billion continues to show a steady recovery, approaching multi-month highs. The growth is supported by the general improvement in sentiment on the crypto market, but the path to the $ 5,000 level remains uncertain due to weak accumulation by investors.

Ethereum’s current accumulation rate is about 30%, which is below the usual threshold of 50%, which usually indicates active participation of long-term holders. Historically, this figure has risen to 40−45% during steady growth, so the current level indicates cautious optimism rather than mass buying.

Additional tension is created by the Age Consumed metric, which has recorded a sharp increase twice this month. This means that old, previously inactive coins have started to move, probably to be sold. Such surges often precede short-term corrections as they increase supply on the market. If the trend continues, Ethereum may face resistance on its way to new highs.

The key resistance level remains $ 4,222. Its breakthrough could open the way to $ 4,500, and with active accumulation — to $ 4,956−5,000. This will signal a return to the bull market. At the same time, in case of increased pessimism or further sales by major players, the price may fall below $ 4,000, and in the worst case scenario, to $ 3,872.

The current situation on the Ethereum market remains sensitive to changes in investor behavior. The further dynamics will depend on whether the asset will be able to step up its accumulation and hold key support levels.