ETH Price Update: A Closer Look at Ethereum’s Bullish Momentum

Ethereum (ETH) has recently shown signs of a potential rally. As of today, ETH is trading at $1,623.48, marking a 3.26% increase in the past 24 hours. Trading volumes have surged by over 50%, reaching $11.19 billion, signaling a wave of renewed investor interest. While ETH has shown a positive daily movement, its seven-day performance remains relatively flat, up just 0.53%.

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Ethereum Traders Eye Bullish Potential

Ethereum traders are growing more confident about a potential bullish trend. There has been a noticeable increase in the interest surrounding Ethereum derivatives. Open interest has surged by 4.83%, hitting $19.19 billion, and the funding rate has flipped positive, suggesting optimism in the market.

In the past four hours, long positions in Ethereum derivatives rose to 55.83%. This shift has resulted in a long-to-short ratio of 1.264, which signals an increase in bullish sentiment. With increasing long positions and rising open interest, traders are anticipating a strong recovery ahead for Ethereum.

Also, check the recent Solana price action.

Vitalik Buterin’s Vision for Ethereum

Vitalik Buterin, the co-founder of Ethereum, recently proposed an ambitious plan to replace the ETH Virtual Machine (EVM) with RISC-V, an open-source instruction set architecture. In a post shared on the ETH Magicians forum, Buterin argued that this change could drastically reduce on-chain execution costs by up to 100 times in some cases.

Buterin’s proposal aligns with Ethereum’s long-term vision to enhance scalability and modularity. Notably, the proposal aims to ensure backward compatibility, meaning existing smart contracts would still function on the new infrastructure. The RISC-V model is not entirely new to the blockchain world, with other platforms such as Polkadot exploring similar approaches. If implemented, this shift could propel Ethereum toward greater efficiency and wider adoption.

ETH’s Price Outlook: Breaking Resistance

Ethereum has recently moved above the $1,550 mark, gaining traction towards higher price levels. It’s now attempting to break through the $1,650 resistance zone, and traders are closely monitoring the price action for potential upside momentum.

Currently, ETH is trading above the $1,600 mark and is also sitting above its 100-hourly Simple Moving Average (SMA), signaling a short-term bullish trend. ETH broke through a bearish trend line with resistance at $1,590, further confirming its upward potential. The next major resistance is found at $1,650, and a successful break above this level could open the door for ETH to rise toward $1,680.

If ETH surpasses the $1,680 resistance, the next targets are $1,720, followed by $1,800. If ETH continues its bullish trajectory, it may even approach $1,840 in the near term.

Potential for Downside Correction

While the bullish outlook remains, ETH might face a correction if it fails to break through the $1,650 resistance level. If this happens, the first support zone would be around $1,620. The next significant support levels to watch are $1,605 and the 50% Fib retracement level of the upward move from $1,566 to $1,644. A drop below $1,605 could lead ETH to retest the $1,580 level, with further declines potentially pushing the price to $1,550.

Technical Indicators: A Mixed Picture

• MACD (Moving Average Convergence Divergence): The MACD for ETH is currently gaining momentum in the bullish zone, reflecting positive price action.
• RSI (Relative Strength Index): The RSI is above the 50 zone, suggesting that ETH is in a neutral to bullish phase. However, on the 15-minute and 1-hour charts, the RSI indicates overbought conditions, signaling that a pullback could be due.

Given these mixed indicators, analysts recommend caution. The current price movement is viewed as a relief rally rather than the beginning of a sustained uptrend. Scalpers are watching for two key setups: a potential short position at the current resistance or a long position on a confirmed breakout above $1,680. The main support levels to monitor include $1,600 and $1,530.

Whale Activity: Accumulation Drives ETH’s Potential

A significant increase in whale activity has also contributed to the bullish sentiment surrounding Ethereum. Recently, a whale purchased 1,897 ETH worth $3 million. Earlier this month, the same whale withdrew over 3,800 ETH from the Bitget exchange, signaling a shift in market confidence. Follow @lookonchain to see more of these updates. And check this list of 17 good X accounts for a follow.

Another whale bought 6,528 ETH worth $10.69 million, bringing their total holdings to over 6,600 ETH. This whale accumulation is seen as a bullish indicator, as whales typically accumulate assets when they anticipate significant price increases.

Final Thoughts on ETH Price

Ethereum’s price action has been closely watched by both traders and investors. The recent surge in trading volumes and the positive sentiment in the derivatives market suggest that Ethereum may be entering a new bullish cycle. Vitalik Buterin’s proposal to enhance Ethereum’s architecture further aligns with the long-term bullish outlook for ETH.

As ETH continues to break key resistance levels, the possibility of a rally toward $1,800 or higher becomes increasingly likely. However, caution is advised, as short-term corrections are still possible, especially if ETH fails to break through the $1,650 resistance.

Ultimately, the growing whale activity and increasing trader confidence indicate that Ethereum may be on the verge of a major price movement, making it a key asset to watch in the coming weeks.

If you enjoyed this blog, check out our recent update on Gold vs Bitcoin and trading tokenized Gold.

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