ETH Explodes Above $3000, Charts 20% Weekly Gains.

Ethereum has seen a significant increase in buying pressure near the $2.4k support level, triggering an impulsive price rally and retrieving several key resistance regions. This action is signaling a potential shift to bullish market sentiment, with higher price levels expected in the medium term.

By Shayan

The daily chart

The daily chart shows that intensified buying near the $2.4K channel midline has led to a substantial upside move, allowing Ethereum to break through several critical resistance points:

The 100-day moving average at $2.5K The upper limit of the descending channel is around $2.8K The 200-day moving average at $3K

This strong performance suggests a bullish shift, with Ethereum retrieving these resistance levels. Moreover, crossing the psychological threshold of $3,000 reinforces a positive market sentiment, increasing the possibility of reaching a new all-time high by the end of the year. However, a brief phase of consolidation corrections might be necessary to keep this trend healthy, allowing for potential profit-taking and market stabilization.

Source: TradingView The 4-hour chart

The 4-hour chart shows an initial rise from $2.4K, the lower limit of the descending flag pattern, where buying pressure has been strong. Ethereum has now broken through the $2.8 thousand resistance, which had acted as a major barrier in recent months.

This pause highlights buyers’ intent to push the price higher, with their eyes potentially set on a new ATH.

Currently, Ethereum is approaching $3.1 thousand, the upper limit of the flag, where noticeable selling pressure may arise. Given the impulsive nature of the recent rally, a short-term rejection followed by a temporary corrective pullback seems possible. In this case, a brief correction towards the $2.7k-$2.6k support range (bounded by the 0.5 and 0.618 Fibonacci retracement levels) would be beneficial, setting the stage for an uptrend healthier

Source: TradingView

By Shayan

The fund market premium metric is an essential indicator as it reflects the difference between a fund’s market price and its net asset value (NAV). When the premium rises, it suggests strong buying pressure within a specific region, indicating that investors are paying a higher price for the funds’ shares relative to the underlying assets.

This premium metric declined substantially from mid-November 2021, when Ethereum reached its all-time high. This drop aligned with declining interest in Ethereum funds, a typical response as investors turned cautious during the subsequent bear market.

However, a fundamental change occurred when Ethereum hit its market low. The premium metric started to rise modestly, marking a return of investor interest. Since January 2023, this premium has steadily increased, indicating a resurgence of confidence in Ethereum-backed assets. Recently, the premium moved above zero, revealing positive market sentiment and suggesting strong demand for Ethereum funds.

In short, the positive shift in the premium metric is a promising sign of renewed market optimism. If this trend persists, it could reinforce Ethereum’s broader price momentum, potentially contributing to its future price growth trajectory.

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