- Ethereum trading volume has surged 60% in the past 24 hours.
- Technical analysis shows that $1,906 resistance may lead to a $2,000 test.
Ethereum, the second-largest cryptocurrency by market capitalization, has made notable moves in October. The currency reached a seven-month low of $1,521 mid-week but managed to hit a two-month high of $1,865 by breaking through the $1,700 resistance level at the end week. This two-month high was achieved four days ago and is a result of the bullish momentum that started last week.
Despite high volatility in ETH’s price, last week bulls made waves, driven by the anticipation of potential ETF approvals and the recent surge in the broader cryptocurrency market, with Bitcoin surpassing $35,000. As of the latest data, ETH is trading at $1,803.18, showing a modest increase of 1.05% in the past 24 hours.
During this same period, the trading volume has seen a substantial increase of 60.39% over the past 24 hours, totaling $7 billion. Additionally, recent data from Santiment indicates that ETH’s supply on exchanges has decreased as the price has surged, suggesting that investors have gained confidence and are buying to hold.
ETH’s social dominance is also on the rise as the price moves upward, although it remains lower than the previous peak, which suggests there may still be room for further growth.
Meanwhile, according to IntoTheBlock, Ethereum recorded a remarkable 5,700 large transactions on October 24, with the large transaction count remaining consistently above 1,500 in the days that followed. This can be seen as another bullish signal for the cryptocurrency.
Can The Ethereum Bullish Trend Continue?
A closer analysis of Ethereum’s current price movements reveals several bullish indicators. The 9-day exponential moving average (EMA) has risen above the current trading price, settling at $1,768. Simultaneously, the daily relative strength index (RSI) stands at 69, indicating that the asset is approaching overbought territory.
If ETH can maintain its current momentum and break through the $1,906 resistance area, it is likely to continue its upward trajectory and test the $2,000 resistance level. A successful breakthrough above this mark may pave the way for a test of the $2,123 resistance level.
On the other hand, if ETH’s price falls below the $1,770 level, it is likely to test the $1,671 support level. Further declines could see the price testing the $1,610 support area.