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Ethereum has reached a new local high of $3,219, representing a staggering 35% rise since last Monday. This rapid rise has ignited strong optimism among analysts and investors, who now see Ethereum as poised for further gains as it begins to show strength against Bitcoin. The rally reflects renewed confidence in ETH’s potential, especially as key stakeholders increase their activity.
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Key data from Santiment supports this bullish outlook, highlighting a significant rise in whale transactions. Increased activity among large ETH holders often indicates accumulation, indicating that influential players see the potential for Ethereum’s continued growth. This rise in whale transactions is usually seen as a precursor to further price appreciation, as it indicates continued interest from high-volume investors.
As ETH continues to rise, analysts are closely monitoring its performance against Bitcoin, noting that Ethereum’s recent momentum may signal the beginning of a more sustainable uptrend.
Ethereum’s bullish phase begins
Ethereum has officially entered a bullish phase after decisively breaking major resistance levels and establishing a positive price structure. Recent data from Santiment confirms this upward trendEthereum is now showing strong growth metrics that indicate there may be more gains to come.
Whale transaction data indicates a significant increase in activity of key stakeholders – wallets holding large amounts of Ethereum – who actively contributed to Ethereum reaching its highest price in over 14 weeks.
In addition to the increased whale activity, Ethereum transaction volume has been on the rise, reaching as much as $10.4 billion over the past few days. This rise in volume is an encouraging sign of continued high demand and interest in ETH at its current levels. Large transactions often indicate the confidence of institutional players and high-net-worth investors, reinforcing bullish sentiment around Ethereum as their holdings increase.
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Santiment analysts point out that Bitcoin’s performance during this rally could serve as a catalyst for Ethereum, with the potential for dividends to be reallocated from BTC to ETH as market participants diversify into top altcoins. This dynamic has historically benefited Ethereum during strong market cycles, which could pave the way for Ethereum to return to its previous all-time high.
Additionally, Ethereum network activity appears strong, which is another key indicator of sustainable growth potential. With increased stakeholder engagement, high transaction volume, and a healthy network, Ethereum appears to be well positioned for continued bullish momentum in the current bullish environment.
ETH tests fresh supply
Ethereum (ETH) is currently trading at $3,170, showing strength after a strong move above the 200-day moving average (MA) at $2,955. This break above the long-term resistance level indicates that the bulls are now firmly in control as ETH reaches new supply zones. Holding above the 200-day moving average is a positive indicator to maintain the uptrend, as this level often supports the price action when broken in an upward move.
If ETH experiences a pullback, a decline to the 200-day moving average around $2,955 would represent a healthy rebound, which could pave the way for further gains. Consolidation at or near this level will likely attract more demand, supporting a continuation of the uptrend.
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However, the current strong price action combined with new demand entering the market could push Ethereum higher without a significant pullback. The momentum ETH is building now could help it break through successive supply levels in the near term, pushing towards higher targets. Currently, Ethereum’s upward trajectory is supported by strong technical levels and an increasingly favorable market environment for sustained gains.
Featured image by Dall-E, chart from TradingView