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Ethereum has seen an impressive 35% rally since last Tuesday, marking a bullish breakout as it tests crucial supply levels for the first time since late July. Investor sentiment is increasingly optimistic, driven by an increase in Ethereum on-chain activity.
Key data from IntoTheBlock reveals that transaction volume on Ethereum mainnet has reached its highest levels since July, a bullish signal highlighting renewed interest and activity in the network. This increase in volumes is often seen as confirmation of a breakout, which is in line with the expectations of investors who anticipated a strong recovery towards Ethereum’s yearly highs.
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With the surge, ETH now finds itself at a pivotal point: if it can maintain its strength above these new levels, the stage could be set for further upside as the broader ETH market crypto is recovering alongside Bitcoin.
The next few days will be crucial for Ethereum as traders will monitor whether the bullish sentiment can sustain and propel ETH higher into new price territory.
Ethereum uptrend begins
Ethereum has entered a new bullish phase after eight months of constant selling pressure and significant accumulation of smart money. After a long period of subdued price action, ETH is finally rising, signaling a trend reversal eagerly awaited by many analysts and investors.
Data shared by IntoTheBlock on This increase in volume is a clear indicator of renewed market interest and suggests that more investors are actively trading and accumulating ETH.
When trading volumes increase alongside price increases, it often signals healthy demand and strong market confidence, supporting the likelihood of a lasting uptrend.
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The next few months are expected to be volatile as speculative interest and trading activity increases, with many traders positioning themselves for substantial gains. Despite the anticipated price swings, analysts agree that Ethereum’s next major target is its yearly high of $4,000. Breaking this level would confirm Ethereum’s bullish momentum and set the stage for potential new all-time highs, aligning with broader market optimism.
ETH consolidates above $3,000
Ethereum is trading at $3,180, following a recent push to a local high of $3,250. After a strong weekend rally, price took a break, hinting at the need for consolidation before another potential breakout. This period of sideways movement could be key for ETH to establish support and prepare for further upside, as it allows buyers to gain momentum while absorbing any near-term selling pressure.
Key technical levels show that bullish sentiment is likely to strengthen if ETH maintains its position above $2,950, aligned with the 200-day moving average (MA). Maintaining this critical support level would mean buyers remain in control, setting ETH up for a potential rally towards $3,500 soon.
However, it is also possible that ETH could take a few days to build the momentum needed for its next substantial move, as investors evaluate the recent rally and consider upcoming catalysts.
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At the same time, the market appears optimistic, with analysts noting that maintaining levels above the 200-day moving average is crucial to confirming the long-term uptrend. The consolidation phase of ETH could form the basis for its continued upward trajectory.
Featured image of Dall-E, chart by TradingView
