Ethereum Price Surges 19% in a Week, Approaching All-Time High
Ethereum has been on a bullish run, gaining over 19% in the past week and trading just 12% below its all-time high. The cryptocurrency breached the $4,000 resistance level earlier this week, reaching a weekly high of $4,329 before settling at $4,303 at the time of writing. This surge has extended its year-to-date gains to over 190% and pushed it 7.2% above its December high from last year.
Technical Analysis: Bullish Momentum Confirmed
Ethereum recently confirmed a bullish breakout from a multi-year megaphone pattern on the weekly chart. This pattern, characterized by a series of higher highs and lower lows that expand over time, signaled a potential acceleration of bullish momentum. The price is now trading well above all major moving averages, with the 50-day moving average above the 200-day moving average, indicating a long-term bullish structure.
Momentum indicators, such as the MACD lines trending upward and expanding histogram bars, are also flashing bullish signs. If the current momentum persists, ETH could potentially extend its rally over the coming months toward $7,000, representing a 62% increase from the current price level.
Key Levels and Considerations
Examining liquidation levels, there is a concentration between $4,200 and $4,300, with further clusters around $4,400–$4,500. These zones often act as short-term price magnets. On the downside, notable liquidation levels are visible near $4,100–$4,150, which could accelerate declines if the price retraces.
Spot ETF inflows recorded a record $1 billion in net daily inflows, signaling a turnaround in investor sentiment towards Ethereum. If these inflows persist, increased attention from retail investors could amplify demand and fuel further price appreciation.
However, profit-taking from early investors looking to lock in profits may trigger a short-term pullback. Data shows that short-term Ether holders have been taking profits more aggressively than long-term holders, suggesting a near-term decline could be on the horizon.
Macro factors, such as U.S. economic data releases this week, could heavily influence sentiment. Lower rates resulting from softer inflation could make risk assets like Ethereum more attractive to investors, potentially driving prices higher.
Additionally, Bitcoin’s recent rally and potential correction could impact Ethereum. Traders are closely watching a CME futures gap near $117,200, as historically, price retraces to fill such gaps. A move towards this level could prompt broader market consolidation and put short-term pressure on altcoins like ETH.
In conclusion, Ethereum’s price rally and potential for further gains are closely tied to technical indicators, market sentiment, and external factors like economic data releases and Bitcoin’s movements. Traders will be closely monitoring these factors to gauge the direction of the market in the coming days.