Ethereum is witnessing renewed optimism and interest from investors as the digital asset rides the bullish wave, fueled by a positive market condition. Given the notable price growth observed in the past few days, there are speculations that the upward trend may extend to higher levels in the short term.
Bullish Tailwinds Bolster Ethereum’s Price
Several bullish predictions about Ethereum’s future action have flooded the market following its renewed upward trend. After examining its price dynamics, IntoTheBlock, a leading market intelligence and on-chain data platform, has underlined ETH’s potential in extending the ongoing rally to higher resistance levels.
The market capitalization of the second-largest crypto asset has increased significantly, indicating that institutional and retail investors are expressing their confidence in ETH. IntoTheBlock highlighted that ETH’s market capitalization has grown by an astounding 12% in the past day, showcasing the heightened investor interest.
As the market rally picks up steam, Ethereum is once again positioning itself for a major rally. On-chain data from IntoTheBlock reveals that the only modest resistance with the biggest potential sell wall ahead for ETH is located close to the $1,860 level.
This level stands as the current major resistance level against the altcoin‘s upward trend, which might trigger a pullback if bulls fail to push past the key point. However, if the zone gives way and ETH breaks above, the platform is confident that the ongoing uptrend will extend. At this point, IntoTheBlock claims that a move toward the psychological $2,000 mark looks increasingly plausible.
After a period of consolidation, the altcoin’s price started to gain momentum for its next significant move, bolstered by rising trading volumes and growing network activity. In a previous post on the X platform, IntoTheBlock reported a significant upturn in network activity, as new investors flock to the Ethereum network.
According to the platform, the ETH network witnessed a surge in new user adoption rate to nearly 40% last week, indicating a clear sign of user growth. This development coinciding with bullish price movements suggests a resurgence of interest in the network’s capabilities and operations. Moreover, it signals strong interest among first-time users and goes beyond mere conjecture, considering the current state of the crypto market.
What ETH’s Cost Basis Distribution Reveals
While ETH has witnessed significant price growth, on-chain data platform Glassnode has outlined a level that may serve as a strong barrier for the altcoin. Glassnode identified the next major supply overhead close to the current price at $1,895.50, as indicated by Ethereum’s Cost Basis Distribution.
When ETH approached this price, over 1.64 million coins were acquired, marking it as a critical level of resistance as it trades below it. Most investors at this level were last active in November 2024, when they bought into the previous rally and adjusted their cost basis higher.
Featured image from Pixabay, chart from Tradingview.com
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