Ethereum Price Surges, Eyes New Yearly High
Following renewed interest and demand, the price of Ethereum has seen a significant increase, surpassing both the 100 and 200-day moving averages. This uptrend indicates a potential rally, with buyers setting their sights on reaching a new yearly high in the near future.
The Daily Chart Analysis
An in-depth examination of Ethereum’s daily chart shows a notable surge in buying pressure around the $3K support level, leading to a bullish spike that broke through the 100-day ($3340) and 200-day ($3152) moving averages. Furthermore, Ethereum has successfully reclaimed the key resistance level of $3.5K, a crucial area that buyers have struggled to overcome in recent months. This price action signals a strong presence of buyers in the market, with the goal of achieving a new yearly high.
Despite this positive momentum, Ethereum has formed a sideways wedge pattern over the past few months. It is anticipated that after a period of consolidation, the cryptocurrency will continue its upward movement, aiming to breach the upper boundary of the wedge at $3.7K. Once this level is surpassed, Ethereum is expected to continue its upward trajectory.
The 4-Hour Chart Analysis
Recent bullish momentum on the 4-hour chart has led to a significant surge in price, breaking a long-term descending trendline. This surge has also allowed the price to surpass the key resistance level at $3.3K, indicating strong buyer interest and potential for further gains in the market.
Despite this bullish movement, Ethereum has encountered resistance at its previous swing high on the 4-hour timeframe, leading to a period of sideways consolidation. Breaking above this resistance level could trigger another surge towards the important $3.7K resistance zone.
The current consolidation phase is a positive sign for the market, confirming the breakout above the trendline and completing a healthy pullback. If the price manages to exceed the central pivot at $3524, it will likely signal a continuation of the bullish trend in the near future.
Ethereum’s Price Reversal and Market Sentiment
As Ethereum’s price shows signs of a bullish reversal, it is important to analyze whether this trend will continue. One key metric to consider is the Taker Buy/Sell Ratio, which provides insights into the sentiment of the futures market. A ratio above 1 indicates aggressive buying by bulls, while a ratio below 1 suggests bearish selling pressure.
Looking at the chart, we can see that the Taker Buy/Sell Ratio has spiked above 1, coinciding with the bullish movement in Ethereum’s price. This uptick signals a strong interest from buyers in the perpetual market, indicating a positive bullish sentiment. If this trend in the Taker Buy/Sell Ratio persists, it could confirm a mid-term bullish trend in the market, potentially driving prices higher.
Source: CryptoQuant
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