Amid growing optimism surrounding anticipated ETF approvals, the cryptocurrency market has taken a bullish turn on both daily and weekly charts. Ethereum, in particular, has seen remarkable gains during this market-wide crypto surge.
A recent tweet from Santiment indicates that ETH’s price surged past $1,850 for the first time since August 15th, with only 8.41% of the total Ethereum supply currently residing on exchanges—a figure not seen since its Genesis in 2015. Moreover, whale transactions have reached a six-month high.
Ethereum now stands on the cusp of breaking through the coveted psychological resistance level at $2,000. Interest in this leading smart contract platform has been rising in tandem with Bitcoin’s price, which recently reclaimed its resistance level at $34,000.
Most traders are anticipating a continued bullish trend throughout the market, with Ethereum closely following Bitcoin’s lead as it enters the second phase of recovery, setting its sights on price levels around $2,500 and $3,000.
The latest data from CoinMarketCap reports ETH’s current trading price at $1,784.37, with a 24-hour trading volume of $15 billion, representing a 4.04% increase. Over the last 24 hours, ETH has seen a 1.37% gain, and over the past seven days, it has surged by an impressive 14.65%.
Analyst Insights On Ethereum’s Performance
According to the analysis by Cryptonary, Ethereum is following Bitcoin’s trajectory but is still well on course to reach its next target despite being overbought.
Regarding technical analysis, ETH’s price movement has been notably positive, breaking through the horizontal resistance zone of $1,823 to $1,853. The next major hurdle lies at $1,933.
Encouragingly, it has moved above its primary weekly and daily Moving Averages (MAs) at $1,690 and $1,786, respectively. Maintaining support above $1,786 is crucial for sustaining the upward momentum.
The Relative Strength Index (RSI) has entered the overbought territory, particularly on daily, 12-hour, and 4-hour timeframes, marking the most extended period of overbought conditions since January. At present, there are no clear RSI divergences.
On the funding front, the situation appears positive, with most of the short open interest eliminated in a significant upward move. However, if Bitcoin experiences a minor pullback, Ethereum is likely to follow suit. With the entire market showing signs of being overbought, fresh long positions are best approached with caution.
Nevertheless, for long-term investors, Ethereum’s potential in the current bull run remains substantial, with price targets projected between $7,000 and $10,000.
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