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Ethereum rose over 10% yesterday, marking an impressive recovery alongside a very bullish day for the entire crypto market. This increase has reignited investor optimism, especially as Ethereum approaches its annual high.
Key data from CryptoQuant highlights a significant bullish signal: Ethereum’s Taker Buy Volume reached an astonishing $1.683 billion in one hourly candle. This metric reflects aggressive buying activity in the futures market, further supporting Ethereum’s potential for continued upside momentum.
The driving force behind this rising demand for Ethereum appears to stem from profits being siphoned out of Bitcoin. With Bitcoin continually breaking all-time highs, investors are reallocating their gains to ETH, causing its price to rise. Ethereum’s ability to capitalize on Bitcoin’s momentum underlines its position as the second-largest cryptocurrency and a major player in the broader market trend.
However, the coming days will be crucial for Ethereum as it approaches its yearly highs. A strong breakout above these levels could push ETH into a new uptrend, further strengthening the bullish narrative.
Ethereum bulls are waking up
Ethereum bulls are finally showing signs of life after eight months of bearish price action, with the price rising more than 40% since November 5. This strong upward momentum is in line with the broader market rally and fuels optimism that Ethereum’s recovery is just beginning. The resurgence of bullish sentiment has positioned Ethereum as a key focus for investors looking for opportunities in the current market environment.
This is evident from data from CryptoQuant analyst MaartunnEthereum’s Taker Buy Volume recently reached $1.683 billion in one hourly candle, highlighting the significant demand and engagement of high-volume transactions.
This aggressive buying activity is a bullish signal, indicating greater confidence in Ethereum’s potential to continue its rally. Strong demand on this scale puts upward pressure on the price, reinforcing the bullish narrative for ETH.
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However, Ethereum still faces a critical hurdle at the $3,550 level, a key supply zone that has acted as a barrier since late July. The coming days will be crucial for Ethereum as breaking this key resistance could mean the continuation of its upward trajectory. However, failure to do so could lead to short-term consolidation. All eyes are now on ETH as the next steps could set the tone for the altcoin market.
ETH remains above key levels
Ethereum (ETH) is trading at $3,333 after rising 10% yesterday, marking a significant recovery for the second-largest cryptocurrency. The price is testing a critical supply zone just below the USD 3,450 level, a resistance area that bulls must regain to confirm the uptrend and maintain momentum for new highs.
This supply zone has historically acted as a key barrier, and crossing it with conviction would indicate strong buying pressure and the possibility of a sustained rally. A position above the 200-day moving average (MA) of $2,959 further strengthens the bullish case for Ethereum, as this indicator is widely considered a benchmark for long-term price movements.
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Should Ethereum maintain its position above the 200-day MA and definitively move past the $3,450 level, it could pave the way for a bullish rally, targeting higher resistance zones in the coming days.
However, failure to overcome this supply area could lead to near-term consolidation as the bulls regroup to challenge the level again. For now, the market is focusing on Ethereum’s ability to clear this crucial resistance and continue its upward trajectory.
Featured image of Dall-E, chart from TradingView
