- Ethereum (ETH), the largest altcoin, saw a remarkable 25% increase last week, boosting its price to $3,900.
- Market watchers are now anticipating an altcoin season, with ETH on the verge of crossing the $4,000 barrier this week.
- “The altcoin commenced the week with a 2.16% gain, supported by a 70% surge in intraday trading volume, fueling hopes for a sustained upward trend,” said a market analyst.
Ethereum’s recent surge has investors eyeing the $4,000 mark, with increased network activity and positive market sentiment driving optimism.
What Does Ethereum’s Price Chart Indicate?
Over the past 15 days, ETH experienced a 35% ascent, disrupting the short-term pullback phase. The altcoin is nearing a significant breakout point, with investors keenly observing whether this momentum could lead to an all-time high. The rising trend starting from $2,850 resulted in a falling wedge formation breakout, forming a rounding bottom formation. A critical neckline at $4,000 signals a potential breakout rally.
In the last 72 hours, ETH surged by 5%, creating a three white soldiers pattern, which signifies strong upward momentum. The MACD indicator shows an upward trend, despite a brief pause as the histogram decreases. The RSI line has flattened near the overbought region, indicating some consolidation below $3,900. However, the week’s initial rise suggests a positive outlook, with the goal of reclaiming the $4,000 level.
How Has Network Activity and Open Interest Increased?
Ethereum’s network activity significantly escalated over the past week, with the total number of ETH transfers increasing by 72.45% and active wallet addresses rising by 3.58%, indicating higher network participation. Transactions also climbed by 3.84%, reaching 1.13 million, demonstrating robust network performance and engagement.
Additionally, Ethereum’s open interest rose by 6.84% in the last 24 hours to $13.17 billion, reflecting a 51.06% increase on a weekly basis. The positive funding rate of 0.01641022 indicates a bullish trend, with traders willing to pay premiums. Net flow data to cryptocurrency exchanges showed a significant 1087.48% drop in the last 24 hours, indicating lower net deposits compared to the 7-day average.
Actionable Insights
– The critical $4,000 neckline signifies a potential breakout rally.
– A three white soldiers pattern indicates strong upward momentum.
– Increased network activity and open interest suggest robust market engagement.
– Lower net deposits to exchanges imply reduced selling pressure.
The current uptrend and favorable market sentiment suggest a possible rise for ETH in the coming week. On-chain indicators and technical analyses support the likelihood of ETH surpassing the psychological $4,000 level. If achieved, Ethereum could target $4,698 based on Fibonacci retracement levels. Furthermore, any news regarding spot Ethereum ETF listings could propel ETH to the 1.618 Fibonacci level, corresponding to $5,841.
Conclusion
Ethereum’s recent performance has been nothing short of impressive, with significant gains and increased network activity suggesting a bullish trend. Investors should keep an eye on the $4,000 level, as breaking this barrier could lead to further gains. With positive market sentiment and strong technical indicators, ETH appears poised for continued growth. However, as always, investors should conduct their own research and consider the inherent risks associated with cryptocurrency investments.
