ETH Explodes Above $3K, Posts 20% Weekly Gains

ethereum has seen a significant increase in buying pressure near the $2,400 support level, fueling an impulsive price surge and reclaiming several key resistance regions. This action indicates a possible shift towards bullish market sentiment, with higher price levels expected in the medium term.

By shayan

The daily chart

The daily chart shows that intensifying buying near the $2,400 mid-channel boundary has sparked a substantial upward move, allowing ethereum to break through several critical resistance points:

• The 100-day moving average at $2.5 thousand
• The upper limit of the descending channel is around $2.8K
• The 200-day moving average at $3,000

This strong performance suggests a bullish reversal, with ethereum reclaiming these resistance levels. Furthermore, crossing the psychological threshold of $3,000 reinforces the positive market sentiment, increasing the possibility of reaching a new all-time high by the end of the year. However, a short consolidation correction phase might be necessary to maintain this trend in a healthy manner, allowing for possible profit taking and market stabilization.

The 4 hour chart

The 4-hour chart shows an initial rise from $2,400, the lower boundary of the descending flag pattern, where buying pressure has been strong. ethereum has now broken through the $2.8k resistance, which had acted as a major barrier in recent months.

This breakout highlights buyers' intention to push the price higher, with their eyes potentially set on a new ATH.

Currently, ethereum is approaching $3.1k, the upper limit of the flag, where notable selling pressure may emerge. Given the impulsive nature of the recent rally, a short-term rejection followed by a temporary corrective pullback appears possible. In this case, a brief correction towards the $2,700 – $2,600 support range (capped by the 0.5 and 0.618 Fib retracement levels) would be beneficial, setting the stage for a healthier uptrend.

By shayan

A fund's 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 is high, it suggests strong buying pressure within a specific region, indicating that investors are paying a higher price for the fund's shares relative to the underlying assets.

This premium metric has declined substantially since mid-November 2021, when ethereum hit its all-time high. This decline aligned with declining interest in ethereum funds, a typical response when investors became cautious during the subsequent bear market.

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

In summary, the positive change 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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