Key Points
- Ethereum (ETH) has seen an increase of 9.03% over the past week.
- An analyst predicts further gains if the $2200 support level is maintained.
Ethereum (ETH) has shown a significant recovery in its market value. The cryptocurrency is currently trading at $2553.
This represents a 5.25% increase in the past 24 hours, marking the end of a week-long surge. Over the week, Ethereum (ETH) has increased by 9.03%.
Prior Market Conditions
Before this upward trend, Ethereum (ETH) was on a downward trajectory, with its value dropping to $2251 last week. Despite the recent surge, Ethereum’s price is still significantly lower than its March peak of $4070.
It is also 47.9% lower than its all-time high of $4878. These market conditions have led to questions about the sustainability of the recovery. Crypto analyst Ali Martinez suggests there could be a rebound if the $2200 support level is maintained.
Market Sentiment
Martinez points out that the TD Sequential is currently indicating a ‘buy’ on Ethereum’s weekly charts. This suggests a strong potential for a rebound if Ethereum’s prices remain above the $2200 support level.
The TD Sequential is a tool used to identify trend exhaustion and potential reversal points. A buy signal suggests that the downtrend is losing strength, indicating a potential upward reversal. Therefore, Ethereum (ETH) may see a sustained rally rather than a short-term bounce.
Positive Outlook for Ethereum
Ethereum (ETH) is experiencing strong upward momentum on weekly charts due to favourable market conditions. Ethereum’s OI-Weighted Funding Rate has remained positive for the past 4 days.
A positive OI-Weighted Funding Rate suggests that a significant volume of open interest is associated with investors taking long positions. This, combined with a high Open Interest, indicates confidence in upward movement.
Furthermore, Ethereum’s Funding Rate Aggregated by Exchange has been positive for the last three days. This supports the observation of a higher demand for long positions than short.
Ethereum’s large holder netflow has remained positive for most of the week, only turning negative once on the 14th of September. This suggests that large holders are accumulating, signalling confidence in the asset’s future value.
In conclusion, Ethereum (ETH) is currently enjoying positive market sentiment. If these conditions persist, Ethereum may challenge the next resistance level around $2810, which has previously proven to be a tough barrier.
