This article is also available in Spanish.
Ethereum has made a stunning 35% rally since last Tuesday, marking a bullish breakout as it tests key supply levels for the first time since late July. Investor sentiment is growing optimistic, driven by increased Ethereum on-chain activity.
Important data from IntoTheBlock reveals that transaction volume on the Ethereum mainnet has reached its highest levels since July, a bullish signal that highlights renewed interest and activity in the network. This increase in volume is often seen as confirmation of the crack, which is consistent with the expectations of investors who are expecting a strong rally towards the annual rise of Ethereum.
Related Reading
With the momentum building, ETH is now standing in a very important position: if it can maintain strength above these new levels, the stage may be set for an upswing as the wider circles of the crypto market align with Bitcoin.
The next few days will be crucial for Ethereum as traders watch to see if the bullish sentiment can sustain and propel ETH higher into new price territory.
Ethereum Bullish Trend begins
Ethereum has entered a new bullish phase after eight months of consistent selling pressure and significant accumulation by smart money. Following a long period of bearish price action, ETH is finally rising, marking a trend reversal that many analysts and investors have been eagerly awaiting.
The data shared by IntoTheBlock on X shows that the volume of the Ethereum mainnet has increased significantly, and about 60 billion dollars were settled last week – the highest level since July. This increase in volume is a clear indication of renewed market interest, and suggests that many investors are actively trading and accumulating ETH.
When transaction volumes increase in line with price increases, it often indicates healthy demand and strong market confidence, which supports the possibility of a continued bullish trend.
Related Reading
The next few months are expected to be volatile as speculative interest and trading activity increases, with many traders lining up to make big gains. Despite the expected price swings, analysts agree that the next main target for Ethereum is its yearly high of $4,000. A breach of this level would confirm Ethereum’s bullish momentum and set the stage for a potential high, consistent with broader market optimism.
ETH Accumulates Over $3,000
Ethereum is trading at $3,180, following a recent push to the local high of $3,250. After a strong rally over the weekend, the price has stalled, suggesting a need to consolidate before another possible breakout. This period of sideways movement could be important for ETH to establish support and prepare for further upside, as it allows buyers to gather momentum while holding back any short-term selling pressure.
Key technical levels indicate that bullish sentiment is likely to strengthen if ETH maintains its position above $2,950, which corresponds to the 200-day moving average (MA). Holding this key support level would indicate that buyers remain in control, setting up ETH for a potential rally towards $3,500 in the near future.
However, it is also possible that ETH could take a few days to build the necessary momentum for its next big move as investors evaluate the recent rally and consider future motivations.
Related Reading
For now, the market seems optimistic, with analysts noting that maintaining levels above the 200-day MA is important to confirm the long-term bullish trend. The consolidation phase of ETH could be the basis for continuing its upward trajectory.
Featured image from Dall-E, chart from TradingView
Source link