Ethereum is experiencing revived enthusiasm and attention from investors as the virtual asset benefits from the bullish trend, brought about by favorable market conditions. In light of the significant price rise noted in recent days, there are theories that the upward momentum may reach higher levels shortly.
Bullish Indicators Support Ethereum’s Value
Numerous optimistic forecasts regarding Ethereum’s future movement have inundated the market following its renewed upward trajectory. After analyzing its price trends, IntoTheBlock, a prominent market intelligence and on-chain data service, has emphasized ETH’s potential in continuing the prevailing rally to higher resistance points.
The market cap of the second-largest cryptocurrency has significantly risen, showcasing that institutional and retail investors are showing their trust in ETH. IntoTheBlock noted that ETH’s market capitalization has grown by a remarkable 12% in the last 24 hours.
As the market rally accelerates, Ethereum is again positioning itself for a substantial surge. On-chain data from IntoTheBlock indicates that the only minor resistance with the largest potential sell zone ahead for ETH is found around the $1,860 mark.
This level represents the current primary resistance threshold against the altcoin’s upward movement, which may lead to a setback if bulls cannot advance beyond this critical point. Conversely, if the zone breaks and ETH surpasses it, the platform believes that the existing upward trend will continue. At this juncture, IntoTheBlock asserts that moving toward the psychological $2,000 level appears increasingly likely.
Following a phase of consolidation, the altcoin’s price began to gather momentum for its next significant move, supported by increasing trading volumes and escalating network activity. A prior update on the X platform revealed a rise in network activity as new investors flock to the Ethereum project.
As per the platform, the ETH network recorded a spike in new user adoption rate to nearly 40% last week, indicating a clear sign of user expansion. Given that this development aligns with bullish price behavior, it implies a revival of interest in the network’s functionalities and operations. Additionally, it signifies considerable enthusiasm from first-time users and transcends mere speculation, particularly considering the current landscape of the crypto market.
Insights from ETH’s Cost Basis Distribution
Although ETH has experienced substantial price appreciation, on-chain data provider Glassnode has identified a level that could potentially serve as a strong barrier for the altcoin. Glassnode indicated that the next significant supply overhead near the existing price stands at $1,895.50 in accordance with Ethereum’s Cost Basis Distribution.
At the time ETH was priced at this level, over 1.64 million coins were acquired, creating it a critical resistance point while trading below it. Most investors at this level were last engaged in November 2024 when they entered during the previous surge and elevated their cost basis.
Featured image from Pixabay, chart from Tradingview.com
Editorial Approach for bitcoinist is focused on providing meticulously researched, precise, and impartial content. We maintain rigorous sourcing criteria, with each page undergoing thorough examination by our team of leading technology specialists and seasoned editors. This procedure guarantees the integrity, relevance, and benefit of our content for our readers.
