Ethereum’s $4,500 price threshold has emerged as a critical resistance zone that historically indicates market inflection points. Technical analysis shows this level consistently triggered heightened volatility and structural instability during prior price cycles.
The $4,500 barrier served as a key resistance cap in March 2024 and previously during the 2020-21 bull cycle. This resistance level represents the +1σ (one standard deviation) effective realized price range – a metric combining Ethereum’s network-wide realized price with volatility measurements to assess asset health and price distribution.
Market risks intensify when Ethereum approaches or surpasses the +1σ threshold. Historical data shows such breakpoints typically precede increased price turbulence and potential corrections. The metric identifies zones where asset prices deviate significantly from average investor cost basis.
Traders are monitoring the $4,500 level as a pivotal marker for Ethereum’s price trajectory. Breaching this resistance could signal further upward momentum, while rejections may indicate impending volatility. This technical indicator continues to serve as a crucial gauge for market structure risks.