- Ethereum posts a $4,200.39 weekly close, breaking multi-year resistance and marking its highest level since December 2021 with 12.95% growth.
- Weekly transactions hit 11.9 million, while daily activity reaches 1.92 million, driven by stablecoin transfers, DeFi activity, and swaps.
- Institutional inflows, staking supply restrictions, and increasing Layer 2 adoption all contribute to Ethereum’s possible target of $4,500 and a new all-time high.
Ethereum had its highest weekly close of 2024, above $4,000 for the first time since 2021. The breakout comes amid record network activity, growing institutional interest, and increased on-chain activity.
Price Breakout After Multi-Year Resistance
Ethereum ended the week at $4,200, marking a 12.95% gain over the past seven days. This close surpasses its previous 2024 highs and confirms a breakout above a resistance level that has held for years. Market participants are now assessing whether the $4,000 level can serve as a new support.
Bitcoinsensus noted that Ethereum had faced four previous rejections at this price level in past years. The latest move is seen as a clear shift in momentum, with traders now eyeing higher targets. Holding this level could open a path toward $4,500 and beyond.
Crypto-Gucci.eth emphasized how market conditions differ from the last time Ethereum traded at these levels. The post highlighted the launch of Ethereum ETFs, 401(k) access to ETH, and large treasury allocations as new structural drivers supporting price stability and growth.
Network Performance Reaches Record Levels
Ethereum’s network activity has reached historic highs, with weekly transactions hitting 11.9 million. Daily transactions have surged to 1.92 million, the highest in 18 months. BullifyX pointed out that this reflects a blockchain running at full capacity, with price movement still catching up to network strength.
In contrast to the NFT-driven spike of May 2021, the current surge is powered by stablecoin transfers, decentralized finance protocols, and token swap volumes. The increase is further supported by Ethereum’s gas limit expansion to 45 million, announced by Vitalik Buterin in July.
Stablecoin supply on Ethereum has been climbing throughout the year, reaching fresh highs. Growth in Layer 2 networks continues to accelerate, with Base Chain leading in adoption. These trends suggest sustained and diversified use of the network beyond speculative trading.
Fundamentals Align With Price Action
The rally appears to be driven by organic demand, backed by strong on-chain metrics. Ethereum’s base chain application revenue is on the verge of a breakout, supported by record transaction volumes and growing user activity.
Institutional participation is increasing through ETF inflows and treasury acquisitions, adding to a staking-driven supply reduction. This accumulation trend may continue to push prices upward as demand remains.
With Ethereum experiencing its highest weekly close in three years, the $4,000 mark has become important for the market. Analysts point out that if support holds, the next targets will be $4500 and possibly a new all-time high.
