Ethereum price held steady at the crucial resistance level at $4,000 as the sentiment in the crypto industry improved. ETH, the second-biggest crypto in the industry, was trading at $3,985 as traders remained optimistic.
Ethereum price technical analysis
The weekly chart shows that the ETH price has done well in the past few weeks. It has rallied in the last three consecutive weeks and is now sitting at its highest level since March this year.
Ethereum has failed to move above this level three times since March this year, meaning that it has formed a triple-top pattern. In most periods, a triple-top is usually a risky pattern that leads to more downside.
On the positive side, the coin has remained above the 50-week and the 100-week Exponential Moving Averages (EMA). It has also moved above the ascending trendline that connects the lowest swings since June 2022.
Ethereum has also moved above the middle line of the Andrew’s pitchfork tool. Therefore, there are rising odds that it will continue rising as bulls target the all-time high of $4,856, which is about 22% above the current level.
On the flip side, a drop below the support at $3,700 will invalidate the bullish view. It will be a signal that it may drop to the neckline of the triple-top at $2,000.
ETH price chart | Source: TradingView
ETH is seeing strong demand
There are a few reasons why the ETH price may continue doing well in the near term. First, there are signs that it is seeing strong institutional demand. Data by SoSoValueshows that the cumulative total inflows in its spot ETFs has jumped to over $1.41 billion.
It has had positive inflows in each day since November 2022, with the Grayscale Ethereum Trust (ETHE) seeing the most purchases. It now has over $5.9 billion in assets under management. The other big Ethereum funds are from companies like Grayscale, Fidelity, Bitwise, and Franklin Templeton.
The other potential catalyst for Ethereum price is that we are now in the altcoin season. Data shows that the altcoin season index has jumped to over 80, meaning that most altcoins are doing better than Bitcoin.
Meanwhile, the crypto fear and greed index has moved to the extreme greed zone, meaing that investors have embraced a risk-on sentiment. Again, Ethereum and other altcoins usually do well when there is greed in the market.
Ethereum has strong fundamentals. It is the biggest chain for developers in the Decentralized Finance (DeFi) industry, with over $78 billion in total value locked.
Ethereum has the most stablecoins, totaling at over $106 billion. This is an important thing since stablecoins are some of the most crucial assets in the crypto industry.
Further, it is the most active chain in the DEX industry. It handled DEX transactions worth over $24 billion in the last 7 days. Its DEX networks have over $12 billion in assets.
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