ETH explodes above $3,000, posts 20% weekly gains

Ethereum saw a significant increase in buying pressure near the $2.4K support level, driving an impulsive price rally and reclaiming several key resistance regions. This action signals a potential shift towards bullish market sentiment, with higher price levels expected in the medium term.

By Shayan

The daily chart

The daily chart shows that intensified buying near the $2.4k mid-channel boundary triggered a substantial upward move, allowing Ethereum to break through several critical resistance points:

• The 100-day moving average at $2.5,000
• The upper limit of the descending channel is around $2.8k
• The 200-day moving average at $3,000

This strong performance suggests a bullish shift, with Ethereum reclaiming these resistance levels. Additionally, crossing the psychological threshold of $3,000 reinforces positive market sentiment, increasing the possibility of hitting a new all-time high by the end of the year. However, a brief phase of consolidation corrections may be necessary to maintain this trend in a healthy manner, allowing for possible profit-taking and market stabilization.

The 4-hour chart

The 4-hour chart shows an initial rise from $2.4k, the lower boundary of the descending flag pattern, where buying pressure has been strong. Ethereum has now broken out above the $2.8k resistance, which had been a significant hurdle in recent months.

This breakout highlights buyers’ intent to increase the price, with eyes potentially on a new ATH.

Currently, Ethereum is approaching $3.1k, the upper limit of the flag, where notable selling pressure could emerge. Given the impulsive nature of the recent rally, a short-term rejection followed by a temporary corrective retracement seems possible. In this case, a brief correction towards the $2.7k to $2.6k support range (limited by the 0.5 and 0.618 Fibonacci retracement levels) would be beneficial, paving the way for an uptrend healthier.

By Shayan

The fund market premium measure is a critical indicator because it reflects the difference between a fund’s market price and its net asset value (NAV). When the premium is high, it suggests strong buying pressure in a specific region, indicating that investors are paying a higher price for the fund’s shares relative to the underlying assets.

This premium metric has declined significantly compared to mid-November 2021, when Ethereum reached its all-time high. This drop corresponds to a decrease in interest in Ethereum funds, a typical response as investors became cautious during the ensuing bear market.

However, a crucial change occurred when Ethereum hit its bear market low. The premium measure began to increase modestly, marking a return to investor interest. Since January 2023, this premium has continued to increase, signaling renewed confidence in Ethereum-backed assets. Recently, the premium rose above zero, revealing positive market sentiment and suggesting strong demand for Ethereum funds.

In summary, the positive development of the premiums indicator is a promising sign of renewed market optimism. If this trend persists, it could strengthen Ethereum’s broader price dynamics, potentially contributing to its future price growth trajectory.