Ethereum (ETH) is on an upward trend this morning, climbing about 10% in the past 24 hours to $1,155. It came close but didn't fall back under $1,000 as some experts predicted.
The world's second-largest cryptocurrency has experienced a robust comeback in just over two weeks, with buying activity over the US markets holiday boosting prices.
But can ETH sustain this rally? Or will it be for the time being?
The altcoin has been in a slump this year, with worries about an economic crisis and crypto bankruptcy harming its value.
In the last 24 hours, ETH/USD fluctuated wildly between $1,086 and $1,165, showing how volatile this market can be. The ETH/USD's trading volume has climbed by 32% to $15.3 billion, while the entire market capitalization fluctuates around $132 billion.
After falling below about $1,000 seven days ago, Ethereum's price is slowly climbing back up. The ETH/USD pair continued its upward motion after several days of stability and blew through the prior resistance at $1,100.
On Tuesday, the price barely paused before each upward push throughout the day.
Overnight, the next level of resistance at $1,175 was already breached, suggesting that bullish energy is currently vital and that the intermediate-term pricing mechanism may soon begin seeing green again.
It was a calm weekend in the cryptocurrency markets, with very little activity on Independence Day.
It's not surprising that ETH fell below $1,000 on June 30th. But the bears could not capitalize and take advantage of this opportunity, which means buyers are still in control for now.
The bulls will try and take control of the market by pushing Ethereum over the 20-day exponential moving average ($1,192). If they succeed, ETH/USDT exchange rate might reach $1,280 and subsequently the 50-day Simple Moving Average ($1,535).
The beginning of a fresh uptrend will be marked by the bulls driving prices above $1,700 for perhaps an extended period. This level could serve as a formidable barrier once more.
The data from Santiment's on-chain analytics indicates that as ETH fell to roughly $1,000, the number of tokens moving into exchanges progressively grew.
The Ethereum supply on exchanges is at its highest level in six months, signaling that many users are dumping their tokens. This also indicates that a significant price recovery is doubtful.
The current ETH price analysis is positive, as market analysts have noted a significantly higher high at $1,175 and a brief retracement on Wednesday.
This indicates a strong chance of an additional higher high being established soon, and it looks like the Bulls are poised to make another run toward $1,250.
On 15 September 2022, Ethereum successfully switched to the Proof-of-Stake protocol. This Merge made ETH more environmentally friendly by reducing energy consumption by 99%.
It was also touted that the high gas fees issue would be solved post the Merge. However, things seem to be otherwise. Reportedly, Ethereum gas fees increased by 31.3% in October.
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