Key Points
- Ethereum’s price soared past $3.2k, setting sights on the $3.5k and $4k marks.
- Strong bullish momentum is predicted for Ethereum on higher timeframes following the recent surge.
Ethereum experienced a significant price increase, surpassing the $3,200 mark and setting its sights on the psychological levels of $3.5k and $4k. This was highlighted by technical analysis which indicated that the $3,562 area could be crucial for the next surge.
Increased Network Activity and High Transaction Volume
The rise in network activity and transaction volume underscored the demand for Ethereum. The cryptocurrency’s price prediction remains strongly bullish on higher timeframes after the recent rally.
Just a week ago, Ethereum seemed to break down beneath the ascending triangle pattern, a bearish indicator. However, the price swiftly reversed, registering 43.1% gains since the previous Tuesday. This suggested that the breakdown was a false move, and interpreting the past two months as a range formation would have been more accurate.
Resistance and Future Predictions
The OBV surpassed three-month highs and was close to the levels from June. The RSI was at 79.5, indicating strong bullish momentum. Ethereum might need a few days to consolidate, particularly as it faced resistance from June and July.
On the weekly timeframe, the $3,562 was the lower high that signaled the downtrend after July. A move beyond this level would make $4k the next price target for Ethereum.
An analysis of the six-month look-back period liquidation heatmap revealed bands of liquidity that reached up to the $4k mark. The July highs at $3,562 were particularly notable as they were crucial on the weekly chart and represented a concentrated liquidity pool.
The scarcity of liquidation levels to the south suggested that in the coming days and weeks, Ethereum is more likely to be drawn upward. Traders should be prepared for volatility on the lower timeframes.
Please note that the information provided does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
