Ethereum’s Bullish Uptrend Signals Strong Buyer Confidence
Ethereum has recently experienced a surge in price, indicating a bullish uptrend and reflecting strong buyer confidence and market participant optimism.
Technical Analysis
By Shayan
The Daily Chart
An analysis of Ethereum’s daily chart reveals a significant shift in market sentiment, with an impulsive uptrend and heightened bullish momentum. The price has surpassed a critical multi-year resistance zone at $2.9K, indicating prevailing bullish sentiment among buyers. However, there is a concern about the emergence of an expanded bearish divergence between the price and the RSI indicator, suggesting a possible correction or consolidation phase before the next surge.
The 4-Hour Chart
On the 4-hour chart, there has been a significant price reversal near the ascending trendline, supported by strong buying pressure. This has led to a breakthrough above a major swing high, establishing a new higher high. While intermittent downward corrections are expected, the trajectory remains bullish. However, periods of heightened volatility may result in notable price fluctuations.
On-chain Analysis
By Shayan
As Ethereum’s price has climbed from $1.5K to surpass $2.8K, investors are interested in futures market sentiment analysis. The open interest metric across all exchanges indicates increased confidence among futures traders in the current uptrend. However, traders should exercise caution due to the impulsive nature of the recent ascent and the potential for sudden liquidation events triggering price declines.
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