Ethereum is in the midst of an impressive bullish recovery, surging above $1,787, a high not seen since April 6. It comes after the cryptocurrency plunged to $1,383 earlier this month. Today, it’s finally beginning to bounce back — indicating a change in market sentiment that could foreshadow a dramatic transformation.
If this bullish rally continues, Ethereum’s foremost price level to keep an eye on would be $2,150. That’s a new low, not just for August and September this year, but for August and September last year.
Some of the things that seem to be fueling Ethereum’s rallying tide. Ethereum’s Awesome Oscillator is also nearing the zero line. It only last crossed this level in late November, preceding an incredible 40% price increase! Ethereum has recently reclaimed the upper channel of a descending falling wedge. This channel was the only one still operating since last November. The crypto has broken above its 25-day moving average and recently created a small bullish flag pattern.
Ethereum's network metrics reveal increasing adoption. Enthusiasm for Ethereum is quite strong, as Ethereum holders just hit an all-time high of 144.8 million! This is an amazing jump from only 130 million last October. The stablecoin market cap on Ethereum is $124 billion, representing a strong 51% market share dominance. Ethereum has a total value locked (TVL) of $107 billion. It boasts a whopping 57% market dominance in the decentralized finance (DeFi) sector. In the last month, Ethereum’s decentralized exchange protocols have handled more than $57 billion in total trading volume. This strong performance has made Ethereum the second-largest chain in this sub-sector, right behind Solana.
Despite these favorable signs, Ethereum’s performance has fallen short of other top cryptocurrencies like Bitcoin and Solana. According to analysts, Ethereum may see substantial upward traction with a firm breakout past the $2,150 resistance barrier. This would be a bullish development and could clear the path for a move up towards $3,000. Failure to overcome this hurdle could result in a break-and-retest pattern, indicating a potential return to a downward trend.
