Crypto News

Ethereum Price Analysis: ETH Explodes Above $3K, Charts 20% Weekly Gains

Ethereum Price Analysis: ETH Explodes Above $3K, Charts 20% Weekly Gains
© Copyright Image: CryptoPotato

Ethereum has seen a significant uptick in buying pressure near the $2.4K support level, driving an impulsive price surge and reclaiming several key resistance regions. This action is signaling a potential shift towards a bullish market sentiment, with higher price levels expected in the mid-term.

Ethereum Price Analysis

By Shayan

The Daily Chart

The daily chart shows that intensified buying near the channels middle boundary of $2.4K has sparked a substantial upward move, allowing Ethereum to break through several critical resistance points:

  • The 100-day moving average at $2.5K
  • The descending channels upper boundary is around $2.8K
  • The 200-day moving average at $3K

This strong performance suggests a bullish shift, with Ethereum reclaiming these resistance levels. Additionally, crossing the psychological $3K threshold reinforces a positive market sentiment, raising the possibility of reaching a new all-time high by year-end. However, a brief consolidation corrections phase might be necessary to sustain this trend healthily, allowing for potential profit-taking and market stabilization.

Source: TradingView

The 4-Hour Chart

The 4-hour chart shows an initial surge from $2.4K, the lower boundary of the descending flag pattern, where buying pressure has been strong. Ethereum has now surpassed the $2.8K resistance, which had acted as a significant barrier in recent months.

This break highlights buyers intent to increase the price, with eyes potentially set on a new ATH.

Currently, Ethereum is approaching $3.1K, the flags upper boundary, where notable selling pressure may emerge. Given the impulsive nature of the recent increase, a short-term rejection followed by a temporary corrective retracement seems possible. In this case, a brief correction toward the support range of $2.7K $2.6K (bounded by the 0.5 and 0.618 Fibonacci retracement levels) would be beneficial, setting the stage for a healthier uptrend.

Source: TradingView

Onchain Analysis

By Shayan

The fund market premium metric is an essential indicator, as it reflects the difference between a funds market price and its Net Asset Value (NAV). When the premium is elevated, it suggests strong buying pressure within a specific region, indicating that investors are paying a higher price for fund shares relative to the underlying assets.

This premium metric substantially declined from mid-November 2021, when Ethereum reached its all-time high. This decline aligned with waning interest in Ethereum funds, a typical response as investors became cautious during the subsequent bear market.

However, a pivotal shift occurred as Ethereum reached its bear market low. The premium metric started to rise modestly, marking a return on investor interest. Since January 2023, this premium has steadily increased, signaling a resurgence in confidence for Ethereum-backed assets. Recently, the premium moved above zero, revealing positive market sentiment and suggesting robust demand for Ethereum funds.

In summary, the positive shift in the premium metric is a promising sign of renewed market optimism. If this trend persists, it could reinforce Ethereums broader price momentum, potentially contributing to its future price growth trajectory.

Source: TradingView

The post Ethereum Price Analysis: ETH Explodes Above $3K, Charts 20% Weekly Gains appeared first on CryptoPotato.

Read more: https://cryptopotato.com/ethereum-price-analysis-eth-explodes-above-3k-charts-20-weekly-gains/

Text source: CryptoPotato

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories