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Ethereum is experiencing its first significant retreat following a vigorous surge that propelled the price from $2,500 to $3,800 in under three weeks. In spite of this pullback, bulls maintain dominance, with ETH firmly staying above the $3,600 threshold—a crucial support area now functioning as the foundation for potential consolidation. The market seems to be assimilating recent gains, with indications suggesting Ethereum’s strength is likely far from finished.
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On-chain insights from Sentora enhance the optimistic perspective. Last week, Ethereum recorded the highest weekly volume of significant transactions since 2021. This rise in large-scale activity indicates increasing interest from institutional players and sizable investors, even amidst short-term fluctuations.
With legal clarity in the US improving and Ethereum fundamentals solidifying, the ongoing pause might be preparing the terrain for another upward movement. Whether this consolidation endures days or weeks, the heightened on-chain activity suggests Ethereum’s ecosystem is warming up again, with major participants gearing up for the next shift.
Institutions Shift From BTC To Ethereum
Sentora data validates a significant transformation is in progress: substantial Ethereum is back. Last week, on-chain transactions exceeding $100,000 surpassed $100 billion—the highest weekly volume since 2021. This surge in high-value transfers showcases rekindled institutional interest, reinforcing Ethereum’s position as the leading altcoin amid shifting market dynamics.
The timing of this increase is pivotal. Ethereum’s price has surged dramatically from $2,500 to $3,800 within weeks, and institutional capital seems to be transitioning from Bitcoin into ETH. While Bitcoin remains within a tight consolidation band just below its all-time peak, Ethereum’s upward momentum and on-chain robustness imply it may currently be spearheading the movement. This shift has incited conversations about the onset of “Ethereum season,” a trend observed in earlier market cycles when ETH surpasses BTC and funds begin to flow into the broader altcoin market.
Some analysts speculate this could signal the early days of a long-anticipated altseason. Traditionally, Ethereum spearheads such phases, serving as a gateway for investors to delve into high-beta assets across the crypto landscape. If ETH sustains its current strength and breaks above the $4,000 mark, it could catalyze a broader market expansion.
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ETH Price Remains Above Vital Support Following Parabolic Surge
Ethereum is witnessing its first substantial pullback since initiating a vigorous climb from the $2,500 range in early July. After achieving a local peak of $3,801, ETH is currently trading around $3,662, down approximately 2.7% for the day. Despite the minor correction, the overarching structure retains its bullish nature. The present price remains above the $3,600 area, which now acts as essential short-term support.
Trading volume has declined slightly during this pullback, indicating that selling pressure remains relatively subdued. ETH continues to trade well above its 50-day, 100-day, and 200-day moving averages, reinforcing the strength of the uptrend. The next significant resistance lies between $3,800–$3,850, which corresponds with previous peaks observed in early 2024.
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A successful consolidation above $3,600 could establish a foundation for a new ascent toward the $4,000 threshold. However, failing to maintain this support level might prompt a retest of the $3,450–$3,500 area, followed by stronger support near $3,000 and the breakout zone around $2,850.
Featured image from Dall-E, chart from TradingView
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