Ethereum saw a significant increase in buying pressure near the $2.4K support level, causing impulsive price gains and reclaiming several key resistance regions. This action signals a potential shift towards bullish market sentiment, with higher price levels expected in the medium term.

Ethereum Price Analysis

Author: Shayan

Daily chart

The daily chart shows that increased buying activity near the channel’s average border of $2.4 thousand caused a significant upward movement, allowing Ethereum to break through several critical resistance points:

• 100-day moving average at $2.5 thousand.
• The upper limit of the descending channel is around $2.8 thousand.
• 200-day moving average at $3 thousand.

Such strong results indicate a bullish shift: Ethereum is reclaiming these resistance levels. In addition, breaking the psychological threshold of $3 thousand enhances positive sentiment in the market, increasing the likelihood of reaching a new all-time high by the end of the year. However, to keep this trend healthy, a short consolidation correction phase may be required to potentially lock in profits and stabilize the market.

4 hour chart

The 4-hour chart shows initial gains from $2.4K, the lower end of the descending flag pattern, where buying pressure was strong. Ethereum has now broken through the $2.8k resistance, which has served as a major barrier in recent months.

This break highlights buyers’ intent to push the price higher and potentially pay attention to the new ATH.

Ethereum is currently approaching $3.1k, the upper end of the flag where significant selling pressure could occur. Given the impulsive nature of the recent rally, a short-term deviation followed by a temporary corrective pullback appears possible. In this case, a short correction towards the $2.7-2.6K support range (bounded by the 0.5 and 0.618 Fib retracement levels) would be beneficial, setting the stage for a healthier uptrend.

On-chain analysis

Author: Shayan

The stock market premium is an important indicator because it reflects the difference between a fund’s market price and its net asset value (NAV). When the premium is elevated, it indicates strong buying pressure in a particular region, indicating that investors are paying a higher price for the fund’s shares relative to the underlying holdings.

This premium has decreased significantly compared to mid-November 2021, when Ethereum reached its all-time high. This decline coincided with a drop in interest in Ethereum funds, a typical reaction as investors became cautious during the subsequent bear market.

However, a crucial shift occurred when Ethereum hit bear market lows. The premium rate began to grow moderately, marking the return of investor interest. Since January 2023, this premium has risen steadily, signaling renewed confidence in Ethereum-backed assets. The premium has recently risen above zero, indicating positive market sentiment and suggesting strong demand for Ethereum funds.

The positive shift in premiums is therefore a promising sign of renewed optimism in the market. If this trend continues, it could amplify broader Ethereum price dynamics, potentially contributing to the future price trajectory.