Ethereum has crossed the $1,900 mark, with a notable 5% rise, potentially signalling a bullish run towards $2,400. It has surpassed the 50-day EMA, showing strong buying momentum. On-chain data supports a smooth climb to $2,000, but potential pullbacks could occur post $2,000 as significant supply zones loom.
Ethereum has recently surged past the pivotal $1,900 mark, marking a 5% increase within a day. The cryptocurrency hit a high of $1,916 within 24 hours, which many analysts interpret as a crucial breakout point. With Bitcoin also back on the rise, crossing $99,000, Ethereum’s bullish momentum raises speculation about a potential climb towards the $2,400 threshold, stirring excitement among investors and traders alike.
In terms of price analysis, Ethereum’s bullish trajectory is signalled by a notable formation: a bullish engulfing candle near the $1,900 level. This comes after breaking through the 50-day Exponential Moving Average (EMA) at $1,853, which had restricted growth in recent weeks. It’s important to highlight that the established support zone near $1,850 is now strongly tested by this uptick, suggesting a more sustainable trend shift.
Technical indicators such as the MACD and signal lines indicate a positive trend, with bullish histograms emerging. This suggests that the momentum is flowing firmly in favour of buyers, paving the way for a more robust rally. The immediate price target appears to be near the psychological barrier of $2,000, but additional targets are being set at $2,108 and $2,426 as potential upside moves.
However, the trajectory isn’t guaranteed. A retreat to around $1,600 is not off the table if buying pressures weaken. The market’s overall sentiment remains crucial; a dip would indicate a consolidation period rather than a continued bullish phase.
On-chain metrics provided by the global In/Out of the Money (GIOM) indicator show Ethereum has breached the $1,858 zone, forming a new in-the-money range where 7.35 million investors hold 7.65 million ETH. The new band stretching from $1,858 to $2,039 suggests that the upswing towards $2,000 could very well occur smoothly due to the consolidated investor interest in this zone.
Interestingly, as Ethereum inches closer to $2,000, the risk of a pullback increases. The out-of-the-money region, extending to $2,492, contains a hefty supply of 69.61 million ETH held by 12.72 million investors. Thus, crossing $2,000 might result in volatility as sellers could come into play, responding to profit-taking opportunities.
