Home » Ethereum Eyes $5k: Record Trading Signals Bullish Momentum

Ethereum Eyes $5k: Record Trading Signals Bullish Momentum

On-chain Data Signals Potential Breakout as Ethereum Sets Trading Volume Record.

by Isaac lane
0 comment

Ethereum (ETH) has exhibited remarkable price resilience, surging above $3,584 as of March 28, poised to close the month with gains exceeding 10% barring any significant reversal below $3,500. On-chain indicators point to deepening market liquidity and increasing whale interest as key drivers behind ETH’s ongoing rally.

Ethereum’s Record-Breaking Trading Volume

Despite experiencing a post-Dencun upgrade sell-off leading to a 30% downturn from its peak of $4,092, Ethereum markets have set yet another bullish record in terms of trading volume. March 2024 witnessed a surge in liquidity and investor interest, with Ethereum recording a historic trading volume of $15.44 billion on March 5, marking a $3.6 billion increase from the previous month’s peak of $11.8 billion on Feb 28.

Ethereum (ETH) price vs. Transaction Volume | March 2024 | Source: Santiment

Ethereum (ETH) price vs. Transaction Volume | March 2024 | Source: SantimentPotential for a $5k Breakout

Analysis of Ethereum’s daily transaction volume highlights a consistent upward trend, with ETH transaction volume hitting new peaks in each of the last five months since November 2023. This persistent surge in transaction volumes indicates a steady growth in market liquidity and bullish sentiment, hinting at the potential for a major breakout above $4,000 in April.

Bullish Outlook for Ethereum’s Price Trajectory


Ethereum (ETH) Price Forecast | March 2024 | Source: IntoTheBlock

The significant spike in peak ETH trading volume, amounting to $3.6 billion between February and March, suggests that Ethereum price is likely to maintain firm support above $3,500 in the coming weeks. IntoTheBlock’s global in/out of the money data reinforces this stance, indicating that 3.78 million existing holders acquired 7.07 million ETH at an average price of $3,534. If these holders remain steadfast, they could catalyze an Ethereum price breakout towards $5,000 in the near term.

Downside Scenarios for Ethereum Bears

However, bearish pressure could materialize if Ethereum’s price retreats towards $3,300, potentially invalidating the bullish prediction. Investors must monitor price movements closely and consider the impact of market sentiment on ETH’s trajectory in the coming weeks.

As Ethereum continues to demonstrate resilience and bullish momentum, investors are eyeing a potential breakthrough beyond $5,000 in April. With robust on-chain data supporting bullish forecasts, ETH’s trajectory remains a focal point for cryptocurrency enthusiasts and market participants alike, poised to navigate the evolving dynamics of the digital asset landscape.

Related Posts :

footer logo

@2023 – All Right Reserved.

Incubated bydesi crypto logo