Ethereum (ETH) has broken out of an eight-month downward trend, marking a significant milestone for the second-largest cryptocurrency by market cap. The digital currency surged over 5% in a day, hitting $3,525, and accumulated a 38% gain in the last month, igniting analyst predictions of further potential.
This technical breakthrough has instilled broader market confidence, with ETH increasing by 10% over the past week, reaffirming its dominance. Analysts, like Logical Trader, see this as the onset of a longer-term bullish trend, with both medium- and long-term expansion likely.
Key technical indicators point to a strong upward trend for Ethereum. The Relative Strength Index (RSI) has hit 70, reflecting high buying pressure. ETH has crossed important 30- and 200-period moving averages, strengthening its bullish outlook.
Notably, Ethereum recently closed above the weekly Kumo Cloud, suggesting a break out that could target resistance around $4,189. The potential for a Golden Cross in technical charts foreshadows historically strong price rallies, further boosting ETH’s prospects.
Beyond technical indicators, Ethereum remains prominently influential in decentralized finance (DeFi) and blockchain applications, controlling more than half of the total DeFi value locked. The rise of ETH-based layer-2 solutions enhances scalability and appeal, drawing developer and user interest.
Simultaneously, Ethereum derivatives activity is rising significantly, with open interest exceeding $20 billion. This increase, alongside higher transaction volumes per block, is driving fees up and potentially lowering ETH’s circulating supply, paving the way for continued price appreciation.
Ultimately, while Ethereum's price has grown by 66% over the past year, many analysts believe it is still undervalued. Predictions exceeding $4,800 this cycle reflect market confidence. Additionally, if pro-crypto legislation passes in the US, it could expedite crypto’s ascension even further, setting the stage for potential new all-time highs for Ethereum.
Источник: www.newsbtc.com ↗