Ethereum has surged over 10%, reflecting a market rebound spurred by whale activity and positive trade remarks. Key price levels are being tested, and while upward momentum is evident, caution is necessary as ETH remains in a bearish channel.
In a surprising turn of events, Ethereum has jumped over 10% in just 24 hours, signalling a noteworthy rebound for the cryptocurrency. This uptick comes amidst rising whale activity and positive perspectives surrounding international trade. The question now is, where is ETH headed next?
After weeks of downward trajectory, Ethereum’s price increase has led it to reclaim a portion of its market dominance. Notably, this market revival seems influenced by comments from US Treasury Secretary Scott Bessent, who suggested that the ongoing US-China trade tensions might be reaching a turning point. With whales becoming more active, we could see intensified price movements soon.
Indeed, the past few hours have seen Ethereum rise sharply, capturing attention with a more than 10% increase in value. This surge is backed by some striking on-chain indicators. Coinglass has reported that around $127 million worth of Ethereum positions were liquidated in the last day. Notably, buyers lost about $34.2 million, while sellers took greater hits, with $92.8 million in short positions being closed.
The positive price action follows remarks by former President Trump, who indicated that US tariffs on Chinese goods might “significantly decrease.” Coupled with Bessent’s comments about the sustainability of the trade dispute, there’s renewed optimism. This bullishness is also reflected in the Ethereum derivatives market where open interest increased by 12%, now exceeding $21.5 billion.
Currently, ETH is trying to hold above the critical $1,650 mark after dipping to around $1,500. As it trades near $1,750, there’s a slight 2% loss for the day, but buyers appear determined. Technical indicators are also leaning in favour of buyers with moving averages on the rise and an encouraging Relative Strength Index (RSI). Should ETH surpass $1,850, hitting $2,000 soon seems plausible.
Moreover, the Fibonacci Bollinger Band suggests an upper target at $2,300. If ETH maintains its position above $1,750, the path could very well lead in that direction. Nevertheless, it’s important to remain cautious as ETH remains in a bearish channel, where confirmation is still awaited. A breakout above $1,870 could potentially kick off the next short-term rally for ETH.
On the flip side, sellers that wish to regain control must bring the price down below the 20-day Exponential Moving Average (EMA20). Should that happen, prices might tumble to near the $1,385 mark—a crucial support area. If ETH dips below this threshold, it could signal a short-term shift in momentum towards the bears.
