Ethereum has experienced a remarkable 35% rally since last Tuesday, marking a significant bullish breakout as it tests critical supply levels for the first time since late July. Investor sentiment has grown increasingly optimistic, fueled by a surge in Ethereum’s on-chain activity.
Surge in Ethereum’s Transaction Volume
Key data from IntoTheBlock indicates that transaction volume on Ethereum’s mainnet has reached its highest levels since July. This bullish signal highlights renewed interest and activity in the network. The surge in volume is often perceived as confirmation of a breakout, aligning with investor expectations of a strong rally toward Ethereum’s yearly highs.
Ethereum’s Pivotal Moment
With momentum building, Ethereum now stands at a crucial juncture. If it can maintain strength above these new levels, further upside may be anticipated as the broader crypto market rallies alongside Bitcoin. The coming days will be critical for Ethereum as traders monitor whether the bullish sentiment can sustain and propel ETH into new price territory.
Ethereum’s Bullish Trend Emerges
Ethereum has entered a new bullish phase after enduring eight months of consistent selling pressure and significant accumulation by smart money. Following a prolonged period of subdued price action, ETH is finally rising, signaling a long-awaited trend reversal.
Data shared by IntoTheBlock reveals that Ethereum’s mainnet transaction volume has surged significantly, with nearly $60 billion settled over the past week—the highest level since July. This spike in volume is a clear indicator of renewed market interest, suggesting that more investors are actively trading and accumulating ETH.
Healthy Demand and Market Confidence
When transaction volumes rise alongside price increases, it often signals healthy demand and robust market confidence, supporting the likelihood of a sustained bullish trend. The next few months are expected to be volatile as speculative interest and trading activity intensify, with many traders positioning for substantial gains.
Targeting Ethereum’s Yearly Highs
Despite anticipated price fluctuations, analysts agree that Ethereum’s next major target is its yearly high of $4,000. Breaking this level would confirm Ethereum’s bullish momentum and set the stage for potential new all-time highs, aligning with the broader market’s optimism.
ETH Consolidates Above $3,000
Ethereum is currently trading at $3,180, following a recent push to a local high of $3,250. After a robust weekend rally, the price has paused, hinting at the need for consolidation before another potential breakout. This period of sideways movement could be essential for ETH to establish support and prepare for further upside, allowing buyers to gather momentum while absorbing any short-term selling pressure.
Technical Levels and Market Sentiment
Key technical levels suggest that bullish sentiment is likely to strengthen if ETH maintains its position above $2,950, aligned with the 200-day moving average (MA). Holding this critical support level would indicate that buyers remain in control, setting up ETH for a potential rally toward $3,500 soon.
However, it’s also possible that ETH could take a few days to build up the momentum needed for its next substantial move as investors assess the recent rally and consider upcoming catalysts. In the meantime, the market appears optimistic, with analysts noting that maintaining levels above the 200-day MA is crucial for confirming the long-term bullish trend. ETH’s consolidation phase could be the foundation for continuing its upward trajectory.
