Technical Analysis
Last week, Ethereum showed an interesting sign of surpassing the 100-day moving average, which indicates growing interest in the cryptocurrency. However, there is a significant hurdle ahead represented by the 200-day moving average. If Ethereum can break through this level, it could spark substantial demand in the market.
The Daily Chart
Looking at the daily chart, there is a strong uptrend forming from the important support region at $1.5K. Buyers have driven the price above the 100-day moving average at $1.7K, bringing hope and demand back into Ethereum’s price action. Breaking above the 200-day moving average at $1.8K could lead to a strong uptrend targeting the resistance at $2K. However, after the recent surge, a temporary correction may occur before another significant move.
The 4-Hour Chart
The 4-hour chart shows intensified bullish momentum and rising demand for Ethereum. The past weeks have seen a compelling uptrend with significant bullish candles breaking key resistance levels. Ethereum also broke through a significant resistance zone around $1,700, confirming a reversal signal. Currently, the price is facing a crucial resistance zone around $1,850, leading to a consolidation phase. This consolidation allows for market demand to rebuild before attempting to break through the resistance region.
On-chain Analysis
The fund market premium metric is an important indicator of buying pressure for Ethereum funds. After reaching its all-time high in mid-November 2021, the metric declined, indicating waning interest in Ethereum funds. However, since the bear market low point, there has been consistent growth in the premium for Ethereum funds from January 2023 to the present date. This suggests increasing investor enthusiasm and demand for Ethereum. If the premium continues to rise, it signifies a convergence between the market price and the actual market value of Ethereum contracts, indicating growing optimism among investors about ETH’s potential.
Hot Take: Growing Interest and Potential Upside for Ethereum
Ethereum has shown signs of growing interest with its recent move above the 100-day moving average. Breaking through the 200-day moving average could trigger substantial demand in the market. On both the daily and 4-hour charts, there is a strong uptrend forming with bullish momentum and rising demand. However, there are crucial resistance zones that need to be overcome for Ethereum to continue its upward trajectory. On-chain analysis reveals a surge in investor enthusiasm for Ethereum funds, indicating a growing demand for the cryptocurrency. This suggests potential upside for Ethereum as investors become increasingly optimistic about its future prospects.
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