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Ethereum rose over 10% yesterday, marking an impressive recovery along with a very bullish day for the entire crypto market. This rise has reignited investor optimism, especially as Ethereum approaches its yearly highs.
Key data from CryptoQuant highlights a major bullish signal: Ethereum Taker’s buying volume reached a staggering $1.683 billion in a single hourly candle. This metric reflects aggressive buying activity in the futures market, further supporting Ethereum’s potential for continued upward momentum.
The driving force behind this growing demand for Ethereum appears to come from profits being wiped out of Bitcoin. With Bitcoin constantly surpassing its all-time highs, investors are reallocating profits to ETH, driving up its price. Ethereum’s ability to capitalize on Bitcoin’s momentum underscores its position as the second-largest cryptocurrency and a key player in the broader market trend.
However, the next few days will be crucial for Ethereum as it approaches its yearly highs. A strong break above these levels could propel ETH into a new uptrend, further strengthening its bullish narrative.
Ethereum bulls wake up
Ethereum bulls are finally showing signs of life after eight months of bearish price action, with the price up over 40% since November 5. This strong bullish momentum aligns with the broader market rally, fueling optimism that Ethereum’s recovery is just beginning. The resurgence of bullish sentiment has positioned Ethereum as a key focus for investors seeking opportunities in the current market environment.
According to data from CryptoQuant analyst MaartunnEthereum Taker buying volume recently reached $1.683 billion in a single hourly candle, highlighting significant demand and high-volume trading participation.
This aggressive buying activity is a bullish signal, suggesting greater confidence in Ethereum’s potential to sustain its rally. Strong demand at this scale creates upward pressure on the price, reinforcing the ETH bullish narrative.
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However, Ethereum still faces a critical hurdle at the $3,550 level, a major supply zone that has acted as a barrier since late July. The next few days will be pivotal for Ethereum as breaking through this key resistance could signal the continuation of its upward trajectory. However, failure to do so could result in short-term consolidation. All eyes are now on ETH as its next moves could set the tone for the altcoin market.
ETH stays above key levels
Ethereum (ETH) is trading at $3,333 after a 10% rise yesterday, marking a significant rally for the second-largest cryptocurrency. The price is testing a critical supply zone just below the $3,450 level, a resistance area that bulls must reclaim to confirm the uptrend and maintain momentum towards new highs.
This supply zone has historically acted as a key barrier, and clearing it with conviction would indicate strong buying pressure and the possibility of a sustained rally. Holding above the 200-day moving average (MA) at $2,959 further strengthens the bullish case for Ethereum as this indicator is widely considered as a benchmark for long-term price trends.
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If Ethereum maintains its position above the 200-day moving average and decisively surpasses the $3,450 level, it could pave the way for a bullish rally, targeting zones of further resistance in the coming days.
However, failure to overcome this supply area may lead to short-term consolidation as bulls regroup to challenge the level again. For now, the market is focused on Ethereum’s ability to overcome this crucial resistance and continue its upward trajectory.
Featured image of Dall-E, TradingView chart
