Ethereum has managed to climb to price levels that were last seen in May 2022. The top altcoin has followed Bitcoin in etching a multi-month high over the weekend.
Up by over 4% daily, $ETH changed hands for $2,240 at the time of press. In doing so, it has extended its weekly gains by more than 10%.
The bullish momentum, which has been replicated by the majority of altcoins in the market, has taken Ether to pre-Terra price levels, when it traded above the $2,200 zone. Even though it had come close to this level multiple times previously, it failed to surpass until now.
Strong indicators
Ethereum’s technical chart illustrated a shift to bullish trend for the altcoin. Its recent price action has suggested that investors are increasingly confident in the asset’s future value.
Indicators were seen moving to the bullish zones on their respective charts. The Relative Strength Index (RSI), which is a momentum oscillator that measures the speed and change of price movements, was noted above its neutral zone, around 60, at the time of writing.
The Moving Average Convergence/Divergence (MACD) identified that the moving averages were indicating a new trend of bullish momentum with its recent crossover of lines. The indicator was also gaining much momentum in this bullish zone.
Charts demonstrated a strong push towards $ETH’s key price level at $3,000 as well. As the broader market recovered, the altcoin successfully broke out of its bearish trend at around $2,100.
Now, a clear move above the $2,320 level could potentially send the price towards the $2,450 resistance zone. After this, the price could aim for the $2,600 level. Gains above this zone are expected to potentially start a wave toward $2,800.
However, widening Bollinger Bands hinted at an increased volatility in price. Nevertheless, $ETH seemed to have made strong support levels at around $2,190 and $2,160. As of press time, the key support stood near $2,120. A downside break from this level might start a steady decline for the alt.
What’s behind the bullish $ETH price action?
Ethereum’s price rally started along with Bitcoin’s move above its key $41k level. The broader cryptocurrency market also followed the same path as its market capitalisation rose to touch the $1.61 trillion mark.
Investors saw buying opportunities in the altcoin as they entered the Ethereum market. Data from IntoTheBlock indicated a substantial volume of tokens, specifically 43.8 million 4ETH, being acquired in the range of $1,900 to $2,100 by 5.85 million wallets.
The bullish outlook for $ETH mostly rode on the hopes for a spot Bitcoin exchange-traded fund’s (ETF) approval in the US. This could potentially pave the way for a similar ETF based on Ethereum as well.
Following the move above $2.2k, Ethereum’s open interest also rose to above $8 billion, according to Coinglass data. The major open interest data was recorded from Binance, Bybit, and OKX, where the figure stood at $2.56 billion, $1.56 billion, and $1.32 billion respectively. Traders were noted taking short positions as the price soared.
Additionally, the Total Value Locked (TVL) of Ethereum also increased from $21 billion in October to $32 billion currently. This was accompanied by a significant whale movement. According to Lookonchain data, a trader successfully sold 2,850 $ETH (valued at $6.35 million) at $2,230 in the last six hours. This got them about $457K in their pockets.
