Coinspeaker
2 December 2024
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Ethereum Price Surges Above $3,700 Amid Bullish Market Sentiment

The Ethereum price surged above $3,700 over the weekend, indicating a potential rally to $4,000 and possibly a new all-time high. The current ETH chart resembles Bitcoin's prior to its 38% rally in November.

The three-line break chart for Ethereum indicates an end to an 8-month corrective trend characterized by lower highs and lower lows. Such breakouts typically prompt bullish reactions, attracting new buyers and forcing out sellers who had restrained price increases during consolidation periods.

Bitcoin demonstrated a similar breakout in mid-October, leading to a rally that reached a new all-time high of $73,000. Since then, Bitcoin has increased by 45%, surpassing $96,000.

Courtesy: CoinDesk

Recent activity on the Ethereum network supports a bullish outlook for ETH. Reports indicate a significant increase in the number of “blobs” posted by layer 2 protocols in November. Posting blobs incurs variable fees paid in Ether, which are burned, thereby reducing the overall supply of ETH and exerting upward pressure on its price.

Ethereum Price Rally to $10,000

Although Ethereum has not yet surpassed the resistance at $4,000, predictions for a rise to $10,000 are increasing. Analyst Titan of Crypto suggests ETH could reach between $7,800 and $9,900. Historical trends indicate a potential peak near the 141.40% Fibonacci extension, which previously marked the last cycle's peak. If history repeats, analysts believe Ethereum might approach $10,000 by the end of this rally.

However, Ethereum has faced rejections at $3,700, making it crucial to close above this level to achieve the immediate target of $4,000. Additionally, inflows into spot Ethereum ETFs have accelerated, with over $550 million in weekly inflows recorded in late November. Notably, daily inflows for spot Ethereum ETFs exceeded those of Bitcoin ETFs for the first time since their inception.