A recent shift in market sentiments has caught the attention of investors, particularly in the case of Ethereum. While Bitcoin is experiencing a slight increase in price, Ethereum has been outperforming with significant daily gains. Surpassing a 12% jump compared to Bitcoin’s 4% to 5% increase, Ethereum has reached a critical resistance level, indicating the potential to become one of the top gainers of the month.
Moreover, institutional interest in Ethereum is on the rise. Data shows that institutions sold nearly 889 BTC but bought 5,410 ETH in the last trading day. Additionally, there has been a spike in ETH inflows into accumulation addresses, suggesting that larger players may have insights that are driving their interest despite Ethereum’s sideways price trend.
The prolonged slump in ETH price has led retail traders to sell off their holdings, which have now been accumulated by institutions. Following the recent Pectra upgrade, burn rates have increased, signaling bullish sentiments for the cryptocurrency.
Looking ahead, the ETH price is approaching a crucial point on the weekly chart, indicating a potential breakout from the accumulation zone and the start of a strong bull run. Two key indicators, the Ichimoku Cloud and DMI, are poised for a bullish crossover, signaling a potential upswing. Additionally, Ethereum is consolidating between the 50- and 200-day moving averages, which are serving as strong support and resistance levels. The absence of a death cross in the weekly chart suggests the possibility of a rebound.
Ethereum is currently striving to surpass the pivotal resistance at $2,800, which could act as a strong base to prevent significant corrections. If successful, the price is expected to rise towards the trend reversal zone around $3,000, potentially pushing the token beyond $3,500.
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