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ethereum has staged 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 a surge in ethereum on-chain activity.
Key data from IntoTheBlock reveals that transaction volume on the ethereum mainnet has reached its highest levels since July, a bullish sign that highlights renewed interest and activity on the network. This increase in volume is often seen as confirmation of a breakout, aligning with the expectations of investors who have anticipated a strong rally towards ethereum's yearly highs.
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With the momentum built, eth now finds itself at a crucial point: if it can maintain its strength above these new levels, the stage may be set for further gains as the broader crypto market recovers alongside bitcoin.
The next few days will be crucial for ethereum as traders watch to see if the bullish sentiment can sustain and push eth into new price territories.
ethereum bullish trend begins
ethereum has entered a new bullish phase after eight months of constant selling pressure and significant smart money accumulation. After a long period of subdued price action, eth is finally rising, signaling a trend reversal that many analysts and investors have been eagerly anticipating.
x.com/intotheblock/status/1855902127983350204″ target=”_blank” rel=”nofollow”>Data shared by IntoTheBlock on x shows that ethereum mainnet transaction volume has increased significantly, with nearly $60 billion settled over the past week, the highest level since July. 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 indicates healthy demand and strong market confidence, supporting the likelihood of a sustained uptrend.
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The coming months are expected to be volatile as speculative interest and trading activity increases, and many traders position themselves for substantial profits. Despite the expected price swings, analysts agree that ethereum's next big target is its yearly high of $4,000. Breaking above 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, the price paused, hinting at the need for consolidation before another possible breakout. This period of sideways movement could be essential for eth to establish support and prepare for further gains as it allows buyers to gain momentum while absorbing any short-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). Holding this critical support level would indicate that buyers remain in control, setting up eth for a possible rally towards $3,500 soon.
However, it is also possible that it will take a few days for eth to build the momentum needed for its next substantial move as investors assess the recent rally and consider upcoming catalysts.
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Meanwhile, the market seems optimistic with analysts noting that maintaining levels above the 200-day moving average is crucial to confirm the long-term uptrend. eth's consolidation phase could be the foundation for continuing its upward trajectory.
Featured image of Dall-E, TradingView chart
