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Ethereum is up an impressive 35% since last Tuesday, marking a bullish breakout as it tests crucial supply levels for the first time since late July. Investor sentiment has become increasingly optimistic, driven by rising Ethereum chain activity.
Key data from IntoTheBlock reveals that transaction volume on the Ethereum mainnet has reached its highest levels since July, a bullish sign that highlights renewed interest and activity in the network. This spike in volume is often seen as confirmation of a breakout, which is in line with the expectations of investors who expected a strong rally towards Ethereum’s yearly highs.
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With momentum building, ETH now stands at a pivot point: If it can maintain its strength above these new levels, the stage could be set for further upside as the broader cryptocurrency market rises alongside Bitcoin.
The next few days will be crucial for Ethereum as traders watch to see if the bullish sentiment can continue and push ETH higher into the new price territory.
The uptrend for Ethereum begins
Ethereum has entered a new bullish phase after eight months of sustained selling pressure and a large accumulation of smart money. After a long period of quiet price action, ETH has finally begun to rise, signaling a trend reversal that many analysts and investors have been eagerly awaiting.
Data shared by IntoTheBlock on X It appears that the transaction volume of the Ethereum mainnet has risen significantly, with nearly $60 billion settled over the past week – the highest level since July. This rise in volume is a clear indicator of renewed interest in the market, and indicates that more investors are actively trading and accumulating ETH.
When transaction volumes rise alongside price increases, it often indicates healthy demand and strong confidence in the market, supporting the potential for a sustainable uptrend.
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The next few months are expected to be volatile as speculative interest and trading activity increases, with many traders poised to make big gains. Despite the expected price volatility, analysts agree that Ethereum’s next major target is a yearly high of $4,000. A break of this level would confirm Ethereum’s bullish momentum and pave the way for potential new all-time highs, in line with broader market optimism.
ETH consolidates over $3,000
Ethereum is trading at $3,180, after a recent surge to a local high of $3,250. After a strong rally over the weekend, the price has paused, indicating a need for consolidation before another potential breakout. This period of sideways movement may be necessary for ETH to establish support and prepare for further upside, as it allows buyers to gather momentum while absorbing any short-term selling pressure.
Key technical levels show that bullish sentiment is likely to strengthen if ETH maintains its position above $2,950, in line with the 200-day moving average (MA). Holding this critical support level would indicate buyers remain in control, leading to a potential ETH rally towards $3,500 soon.
However, it is also possible that ETH will take a few days to build the momentum needed for its next big move as investors evaluate the recent rally and consider upcoming catalysts.
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Meanwhile, the market appears optimistic, with analysts noting that maintaining levels above the 200-day moving average is crucial to confirming the long-term uptrend. ETH’s consolidation phase could be the basis for it to continue its upward trajectory.
Featured image by Dall-E, chart from TradingView