This article is also available in Spanish.
After breaking out of an eight-month downtrend, Ethereum (ETH) is back in the news. This represents a major turning point for the second-largest cryptocurrency by market capitalization.
The coin rose more than 5% in one day, hitting $3,525, and it did just that It is up 38% in the last 30 days. Analysts are buzzing, suggesting that ETH still has plenty of upside potential as it continues to rise.
Related reading
This latest breakthrough has inspired more general confidence in the market. ETH has risen by 10% over the past week, confirming its dominance in the cryptocurrency scene. Technical analysts like Logical Trader say that this action signals the beginning of a long-term uptrend with a clear expansion in the medium and long term.
What a move in ETHUSD
This is how the price should behave when it exits a downtrend channel. #encryption #Ethereum pic.twitter.com/tepsK7grmO– Logical Trader (@logictra6er) November 23, 2024
Bullish technical signals
Ethereum technical indicators are showing a strong upward trend. The Relative Strength Index (RSI) has reached 70, indicating intense buying pressure. Moreover, ETH broke its 30- and 200-period moving averages, reinforcing its uptrend.
Titan of Crypto noticed an interesting development: a higher weekly close than Kumo Cloud. With a potential second target of $4,862 if momentum continues, this technical breakout could see ETH soon test resistance levels near $4,189.
#Alternative currencies #Ethereum The golden cross is coming 🚀#Ether Close above the weekly Kumo cloud: an important milestone.
This breakout could pave the way to $4,100 next! 🎯 pic.twitter.com/q0eOVgxgnU
– Crypto Giant (@Washigorira) November 25, 2024
The uptrend will be further strengthened with the upcoming golden cross, where the short-term moving average will cross above the long-term moving average. In fact, this has historically led to very strong price increases. If these bullish signals are accompanied by continued buying activity, ETH could approach these high price levels in the near term.
Ethereum fundamentals remain constant
Technical prowess aside, Ethereum still shines through its strong dominance in decentralized finance, or DeFi, and a myriad of blockchain applications. The network holds more than half of the total value locked in DeFi, so it is definitely relevant to the ecosystem.
Furthermore, the emergence of ETH-based layer 2 solutions increases scalability and attractiveness for both developers and users.
At the same time, activity in the Ethereum derivatives market is rising. Open interest has surpassed $20 billion, with traders eyeing $3,400 and $3,500 options for expiring soon. Increasing transaction volume per block also results in higher fees, reducing the circulating supply of ETH and potentially raising prices further.
Related reading
Room for growth amid optimism
While the price of Ethereum rose 66% in the previous year, many analysts say it is still undervalued. Expectations of gains of over $4,800 this cycle indicate the market’s faith in ETH’s future.
Meanwhile, if pro-cryptocurrency legislation is passed in the US, it could accelerate the rise of cryptocurrencies even further. It looks like Ethereum will rise, perhaps even to all-time highs, because its fundamentals are strong, it is becoming more popular, and its technical setup is good.
Featured image from DALL-E, chart from TradingView
Comments are closed, but trackbacks and pingbacks are open.