Ethereum has rallied hard lately, with trading volume surging over 50%. This spike in activity hints at rising investor interest in the world’s second-largest cryptocurrency. Many believe the momentum could propel Ethereum’s price to new heights soon.
CoinMarketCap data shows that in the past week, the coin has been up by over 17%. Also, the past month has been bullish for the price of ETH, recording a price growth of over 52%.
Despite this growth, the community still wants to know if this is a short-term pump or a sustainable uptrend.
See the analysis below for a closer look at the data signaling where Ethereum could head next.
Technical Analysis – Indicators Signal Bullish Sentiment
Several technical indicators currently signal bullish strength for Ethereum. The trendlines with breaks show Ethereum’s price repeatedly breaking above descending trendlines. This pattern confirms an upward trend is in play, with bulls outmuscling bears.
Looking at the chart, if the coin follows this trendline, the next possible target will be above $4,000. That’s an increase of more than 32% from its current level ($3,498). Supporting the uptrend, Ethereum’s relative strength index (RSI) sits above 75.
An RSI over 70 is considered overbought territory and reveals extremely strong buying pressure driving up the market.
Additionally, the SuperTrend indicator has flashed a buy signal, suggesting the upside momentum will likely continue based on recent price action. The money flow index (MFI) over 80 further confirms bullishness.
MFIs in this range indicate intense buying interest from institutions and other high-volume traders.
Together, these technical signals show that Ethereum will likely go up soon. Also, the indicators reveal buyers are firmly in control across multiple time frames. However, the cryptocurrency market remains highly volatile and unpredictable.
As always, investors should do their own research before entering positions.
While Ethereum is growing, investors have started betting huge funds on it to go even higher. But to gauge Ethereum’s future trajectory, we must analyze the driving factors behind its recent success.
Ethereum’s Open Interest Jumps $400M in Weekend, Another Bullish Sign?
As Bitcoin’s market dominance declined, the speculation was that money would flow into promising altcoins like Ethereum. As such, speculative traders didn’t waste time over the weekend.
They piled into bullish Ethereum futures contracts, betting on further price appreciation.
Data shows Ethereum’s aggregate open interest in derivatives hit $11.8 billion – a 3-year high after climbing $400 million in a few days.
Source: CoinGlass
This open interest surge signals traders expect Ethereum to rally. With Bitcoin holders now in profit, many may reinvest some gains into cheaper alternatives offering higher upsides.
Ethereum stands to be the destination as money rotates from Bitcoin. Its technological upgrades and growth trajectory continue to fuel bullish narratives.
If more people start buying Bitcoin again, especially because of new ETFs, Ethereum might also benefit from this trend and increase in value. This could push the Ethereum price to around $4,000. However, as mentioned earlier, crypto markets can shift rapidly. Prudent investors should still assess their risk tolerance.
Ethereum Nears $4,000 Hurdle After Weekend Rally: Will It Cross the Mark?
Ethereum trades above $3,500, up 5% from the prior day’s low of $3,365. Given the recent positive momentum, Ethereum might be able to reach $4,000 again, a level it hasn’t seen since late 2021.
Note that a lot of investors who bought Ethereum when the price was high in 2021 are still at a loss.
So, as the price gets closer to where they entered the market, these investors might sell to make a profit. However, there’s a challenge at $3,650, which acts as a significant resistance level. So, ETH has to cross this resistance to push forward to the $4000 price target.
The good news is that recent on-chain data shows over 1.1 million ETH investor addresses acquired tokens at $3,572 on average.
Source: IntoTheBlock
This shows that the interest in the coin is increasing day after day. So, if more buyers can buy Ethereum for around $3,650, it could break through a big obstacle. But while traders track whether Ethereum can gather enough thrust, investors have another opportunity emerging, Sponge V2.
This new crypto is making headlines and currently trades below $1.
Ethereum Alternative: Sponge V2, The Next Big Thing in the Crypto Market
During the rise of Pepe in the summer of 2023, another meme coin called Sponge, inspired by SpongeBob SquarePants, also went up in value. Sponge reached a market value of $100 million, giving early investors a profit of 100 times what they invested.
The interesting thing is that Sponge achieved this without any complex token features or practical uses. Now, with the next bull market coming, the team behind Sponge has launched Sponge V2 on the Polygon network. This new version offers lower fees and faster transaction speeds.
Sponge V2: A New Era of Growth and Opportunity
>>>Visit Sponge V2 Presale<<<
The latest Sponge V2 now has new staking features and a racing game where you can earn rewards. This makes the token more useful and also takes some out of circulation.
Right now, token holders can earn a high return of 656%, but this will drop as more people start staking their tokens.
The V2 token started on February 9 and has already increased significantly. Even though its market value is only $65 million, there’s a chance Sponge could have a big jump in the future as Pepe did.
According to Sponge’s website, the token will be available on bigger and better exchanges.
In a YouTube video, Jacob Bury mentioned the possibility of Sponge being listed on Binance, but it’s just an idea for now. Bury’s speculation shows people are optimistic about Sponge’s future in the current market. With that in mind, interested prospects should visit the official page and buy the token.