Ethereum (ETH), the largest altcoin, saw a remarkable 25% increase last week, boosting its price to $3,900. Market watchers are now anticipating an altcoin season, with ETH on the verge of crossing the $4,000 barrier this week. The altcoin commenced the week with a 2.16% gain, supported by a 70% surge in intraday trading volume, fueling hopes for a sustained upward trend.
What Does Ethereum’s Price Chart Indicate?
Over the past 15 days, ETH experienced a 35% ascent, disrupting the short-term pullback phase. The altcoin is nearing a significant breakout point, with investors keenly observing whether this momentum could lead to an all-time high. The rising trend starting from $2,850 resulted in a falling wedge formation breakout, forming a rounding bottom formation. A critical neckline at $4,000 signals a potential breakout rally.
In the last 72 hours, ETH surged by 5%, creating a three white soldiers pattern, which signifies strong upward momentum. The MACD indicator shows an upward trend, despite a brief pause as the histogram decreases. The RSI line has flattened near the overbought region, indicating some consolidation below $3,900. However, the week’s initial rise suggests a positive outlook, with the goal of reclaiming the $4,000 level.
How Has Network Activity and Open Interest Increased?
Ethereum’s network activity significantly escalated over the past week, with the total number of ETH transfers increasing by 72.45% and active wallet addresses rising by 3.58%, indicating higher network participation. Transactions also climbed by 3.84%, reaching 1.13 million, demonstrating robust network performance and engagement.
Additionally, Ethereum’s open interest rose by 6.84% in the last 24 hours to $13.17 billion, reflecting a 51.06% increase on a weekly basis. The positive funding rate of 0.01641022 indicates a bullish trend, with traders willing to pay premiums. Net flow data to cryptocurrency exchanges showed a significant 1087.48% drop in the last 24 hours, indicating lower net deposits compared to the 7-day average.
Actionable Insights
– The critical $4,000 neckline signifies a potential breakout rally.
– A three white soldiers pattern indicates strong upward momentum.
– Increased network activity and open interest suggest robust market engagement.
– Lower net deposits to exchanges imply reduced selling pressure.
The current uptrend and favorable market sentiment suggest a possible rise for ETH in the coming week. On-chain indicators and technical analyses support the likelihood of ETH surpassing the psychological $4,000 level. If achieved, Ethereum could target $4,698 based on Fibonacci retracement levels. Furthermore, any news regarding spot Ethereum ETF listings could propel ETH to the 1.618 Fibonacci level, corresponding to $5,841.