- Ethereum’s NVT ratio has decreased, indicating potential undervaluation and suggesting possible future price increases.
- MACD indicator shows a bullish trend, signaling positive momentum for Ethereum’s market price.
- Rise in Chaikin Money Flow (CMF) index reflects increased buying pressure, supporting a bullish outlook.
Ethereum has recently outperformed Bitcoin in the cryptocurrency market, registering a significant 8% increase in market price over the past week, compared to Bitcoin’s 3% gains. In the last 24 hours, Ethereum’s price has risen by over 3%.
A notable development in Ethereum’s market behavior is the appearance of a golden cross on its chart, where the 50-day Simple Moving Average (SMA) has crossed above the 200-day SMA. This event last occurred in 2023 and was followed by strong performances from other altcoins, suggesting a similar trend could develop again.
The decrease in Ethereum’s Network Value to Transactions (NVT) ratio suggests that the asset may currently be undervalued, pointing to the potential for future price gains. This assessment is bolstered by various technical analyses.
For instance, the Moving Average Convergence Divergence (MACD) indicator is currently displaying a bullish pattern, implying a positive momentum in Ethereum’s market price.Â
Additionally, an increase in the Chaikin Money Flow (CMF) index indicates rising buying pressure, further supporting the likelihood of an upward movement in Ethereum’s price. These indicators collectively provide a strong case for Ethereum’s continued growth in the cryptocurrency market.
The broader altcoin market appears to be entering what is termed an “altcoin season,” as indicated by the altcoin season index which currently stands at 86. A value above 75 traditionally signals a market environment where altcoins outperform Bitcoin.
Reflecting this trend, other major altcoins such as XRP, BNB, and Dogecoin have also experienced price increases in the last 24 hours, with hikes of 6%, 3.3%, and 4%, respectively.
Despite these gains, there has been a noted decrease in investor confidence in these tokens, highlighting a curious divergence between market performance and investor sentiment.
[mcrypto id=”12523″]
The current price of Ethereum (ETH) is $4,001.7, showing a marginal increase of 0.04%. Ethereum recently breached the $4,000 resistance, a level it has not seen since March, with a daily trading volume of approximately $21.15 billion and a market cap of $482 billion.
Key Observations:
- Trend: Ethereum is exhibiting strong bullish momentum, confirmed by a “golden cross” on the daily chart.
- Support and Resistance: Key support levels are around $3,800, with resistance at $4,200. A sustained breakout could target higher levels, such as $4,500–$5,000.
