Ethereum (ETH) has ignited a significant bullish rally, breaking through the $2,600 mark and fueling speculation of a continued surge towards the $3,000 psychological resistance level. The impressive price action is underpinned by compelling on-chain data, even as trading volume experienced a notable dip.
According to recent data, Ethereum’s price reached $2,550.41, demonstrating a robust 3.02% increase over the past 24 hours. This daily gain contributes to an impressive 41.66% surge witnessed over the last seven days, highlighting the strong bullish momentum currently surrounding the second-largest cryptocurrency by market capitalization. Ethereum’s total market cap now stands at a substantial $307.91 billion, solidifying its position in the digital asset landscape.
Analysis of on-chain metrics provides further insight into the driving forces behind this price surge. Data indicates that a significant number of investors, approximately 10 million addresses, are currently holding Ethereum in profit, collectively possessing around 69 million ETH.
The widespread profitability often signals strong holding sentiment and reduces the likelihood of significant sell-offs. Moreover, increasing inflows observed on exchanges suggest growing investor confidence and a potential accumulation phase, further bolstering the bullish outlook.
These on-chain signals strongly suggest that Ethereum has the potential to overcome upcoming overhead resistance levels and make a run towards the coveted $3,000 price point.
From a technical analysis perspective, Ethereum’s recent performance has been particularly encouraging for bullish traders. The cryptocurrency has printed four consecutive bullish daily candles, decisively breaking through crucial resistance levels. These breakthroughs include the 38.20% Fibonacci retracement level, a key technical indicator, and the 200-day Exponential Moving Average (EMA), a widely followed long-term trend indicator. This sustained upward movement above these significant levels provides strong technical confirmation of the current bullish trend.
The derivatives market also reflects this positive sentiment. Data from this sector reveals an increase in overall trading activity, accompanied by a notable liquidation of short (bearish) positions. This liquidation event often occurs when prices move against short sellers, forcing them to buy back their positions, which in turn adds further upward pressure on the price.
ETH Daily Volumes Drop
Interestingly, despite the significant price climb, the daily trade volume for Ethereum has experienced a decrease of 30.24%. This divergence between rising prices and falling volume can sometimes be interpreted cautiously by technical analysts. However, in this context, it might suggest that the price increase is being driven by strong conviction buying rather than speculative frenzy.
While the specific reason for Ethereum’s recent surge are multifaceted, the combination of positive on-chain data, strong technical breakouts plays a big role. Institutions are also holding Ethereum, which is a major boost.
Adding to the positive outlook, the Brazilian Stock Exchange has announced plans to list futures contracts for both Ethereum and Solana starting in June 2025. This signals growing acceptance and integration of these major cryptocurrencies into mainstream investment avenues. It could potentially attract further institutional capital into the Ethereum ecosystem.