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Ethereum has staged an impressive 35% rally since last Tuesday, marking a bullish breakout as it tests crucial supply levels for the first time since late July. Investor sentiment is becoming increasingly optimistic, driven by a surge in Ethereum’s on-chain activity.
Key data from IntoTheBlock shows that transaction volume on Ethereum’s mainnet has reached its highest level since July, a bullish signal that highlights renewed interest and activity in the network. This increase in volume is often seen as confirmation of a breakout and is in line with the expectations of investors who have been anticipating a strong rally towards Ethereum’s annual highs.
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With momentum building, ETH is now at a pivotal point: if it can maintain its strength above these new levels, it could pave the way for further upside as the broader crypto market recovers alongside Bitcoin.
The coming days will be crucial for Ethereum as traders look to see if bullish sentiment can support ETH and push it higher into a new price area.
Ethereum bullish trend begins
Ethereum has entered a new bullish phase after eight months of consistent selling pressure and significant accumulation by smart money. After a long period of subdued price action, ETH is finally rising, signaling a trend reversal that many analysts and investors have been eagerly awaiting.
Data shared by IntoTheBlock on X shows that Ethereum’s mainnet transaction volume has increased significantly, with nearly $60 billion settled in the past week – the highest level since July. This volume spike is a clear indicator of renewed market interest and suggests that more investors are actively trading and accumulating ETH.
When transaction volumes rise along with price increases, it often indicates healthy demand and strong market confidence, supporting the likelihood of a continued bullish trend.
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The next few months are expected to be volatile as speculative interest and trading activity increase, with many traders positioning themselves for significant gains. Despite the expected price swings, analysts agree that Ethereum’s next big target is the annual high of $4,000. Breaking this level would confirm Ethereum’s bullish momentum and pave the way for potential new all-time highs, in line with the broader market’s optimism.
ETH consolidates above USD 3,000
Ethereum is trading at $3,180, after a recent surge to a local high of $3,250. After a strong weekend rally, the price paused, signaling the need for consolidation before another potential breakout. This period of sideways movement could be essential for ETH to gain support and prepare for further uptrend, as it allows buyers to gain momentum while absorbing any short-term selling pressure.
Key technical levels show that bullish sentiment is likely to strengthen if ETH maintains its position above $2,950, in line with the 200-day moving average (MA). Holding this critical support level would signal that buyers remain in control, allowing ETH to mount a potential rally towards $3,500 soon.
However, it is also possible that ETH will need a few days to build the momentum needed for the next substantial move as investors assess the recent rally and consider upcoming catalysts.
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Meanwhile, the market appears bullish, with analysts noting that maintaining levels above the 200-day MA is crucial to confirming the long-term bullish trend. ETH’s consolidation phase could be the basis for continuing its upward trajectory.
Featured image of Dall-E, chart from TradingView