Ethereum is on a strong upward trajectory, breaking above $3,850 this week. It comes as a result of fresh buying interest, re-capturing ETH’s bull momentum. Ethereum’s trading price was at $3,861.44 on Tuesday, rising by nearly 4.3% throughout the week.
The price action logs a significant bounce after a support test around $3,500 levels last week. Ethereum recovered almost 8% from there, closing above $3,730 on Sunday. It then set a new yearly high of $3,941 on Monday after a small retest.
Crypto analyst Michaël van de Poppe remarked that a correction he once expected never did come to pass. He thinks ETH should now clean through the $4,100 area and then settle. That tells us buyers are still very much in control of near-term action.
One of van de Poppe’s charts shows a consistent rise from lows achieved in June. ETH exceeded significant resistance points at $2,800 and $3,200, taking on a clear rising trend. The next significant barrier remains $4,100, a level temporarily reached during March 2024.
Ethereum momentum grows despite market risks
Institutional demand remains strong. ETH ETFs in the past six weeks have gained by over 1.6 million ETH. This accumulation trend has helped sustain Ethereum’s bullish sentiment, despite broader market volatility risks.
Market capitalization of Ethereum has gone beyond $466 billion. This milestone positions ETH among the world’s 25 largest assets. It has gone past companies like Costco and Johnson & Johnson, a reference to growing confidence among investors in digital currencies.
Since early July, ETH has gained by more than 54%. The upsurge is being pushed by spot buying and increasing derivative market exposure. Market players are still being cautious, however, with developments from a macroeconomic perspective, including changes in Fed policies and U.S. tariff dates.
Technical indicators suggest caution near term
The Relative Strength Index (RSI) is still 77, which suggests that it is overbought. Despite the increasing bull trend, a cooling-off phase appears inevitable from the RSI. This might lead to a short pullback or small consolidation, followed by a fresh upward surge.
The MACD indicator reflects some indecision. The MACD line is approaching the signal line. Falling green histogram bars also suggest that bullish vigor might be running out of steam, at least soon.
If Ethereum’s bull rally stutters, then prices could retrace to levels around $3,730. However, should upward pressure continue, ETH could execute a smooth breakthrough to psychological resistance between $4,000 and beyond.
