Over the past 24 hours, Ethereum (ETH) has experienced a 5% rally, with market indicators and data showing a continued bullish trend for the coin.
The recent surge in the cryptocurrency market has led to a bullish trend, generating gains for a wide range of digital assets, and ETH is no exception. While this sudden ** fostered optimism among investors about a sustained bull market, there were also divergent opinions.
Ethereum's fortunes have taken a positive turn.
After a week of trending, Ethereum investors finally witnessed a recovery in terms of profits, as the coin's daily chart showed a bright green color.
According to the latest data from CoinMarketCap, ETH is up more than 5% in the last 24 hours. The market capitalization is more than $278 billion.
However, CryptoQuant's recent analysis has introduced some cautious opinions, suggesting that Ethereum's ** is likely to remain within a constrained range. CryptoChain, an analyst and contributor to CryptoQuant, noted in its analysis that there are a large number of short trades in the derivatives market, indicating the presence of bearish sentiment.
The analysis also notes that a bullish** start on Ethereum seems unlikely until Bitcoin breaks through the key $43,500 resistance level. Interestingly, Bitcoin has broken through this resistance level.
Therefore, AZC News decided to delve into Ethereum's indicators and assess whether the leading altcoin will be able to reach the level of $2,500 in the near future.
Ethereum's fundamental indicators are showing signs of optimism.
After taking a closer look at CryptoQuant's data, AZC News found some encouraging signs in Ethereum's indicators, hinting at a bullish scenario. It is worth noting that the token's net deposits on exchanges showed strong buying pressure relative to the average of the previous seven days.
In the positive outlook, the number of active addresses has increased, indicating increasing network engagement.
In addition, the Coinbase premium, which reflects the buying sentiment of US investors, remained in the green zone. The derivatives market also contributed to the positive narrative, with Ethereum's funding rate remaining in positive territory, indicating active buying of ETH at the higher grid level.
However, if Ethereum is to maintain its bullish momentum, it will face potential resistance in various resistance zones in the future. A check of Ethereum's clearance levels highlights the need for the coin to break above $2,400 and subsequent $2,450 in the near future to maintain its bullish trajectory.
Despite these challenges, the possibility of Ethereum reaching and exceeding these levels is still possible, which is supported by overall bullish market indicators. The Money Flow Index is showing an upward trend, and the Chander Momentum Indicator is growing with it, reinforcing the outlook for a continued upward trend in Ethereum's value.
**: Cosmic block view.