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Ethereum Set for Gains: Key Bullish Indicators Point to Price Increase

by dave
5 minutes read

Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is showing signs of a potential upside move. Key indicators are turning bullish, and this positive momentum may be triggered by an increase in market buying pressure. Optimism is growing about Ethereum’s near-term prospects.

In this article, we will explore the key indicators signaling this upside potential and discuss what this could mean for Ethereum’s price trajectory.

Technical Indicators: Key Signals Pointing to an Upside Move

4-Hour Chart Analysis

Currently, the price of Ethereum on the 4-hour chart is showing bullish momentum. It is attempting a move toward the 100-day Simple Moving Average (SMA) and the 4-hour bearish trendline. Since breaking above the $3,200 mark, Ethereum has maintained its bullish sentiment. This price stability could lead to a potential rally toward the $3,400 resistance level.

The 4-hour Relative Strength Index (RSI) also suggests that Ethereum’s price may start a bullish move toward the $3,400 resistance level. The signal line of the RSI indicator is maintaining its bullish sentiment above 50% and is currently rising toward the overbought zone.

1-Day Chart Analysis

On the 1-day chart, Ethereum’s price is still trading below the 100-day SMA and the bearish trendline. However, the crypto asset is attempting a bullish move toward the $3,400 resistance level. Since crossing above $3,051, Ethereum has shown bullish resilience, keeping its pace above this level. If Ethereum breaks above both the bearish trendline and the 1-day SMA, it could potentially start a bullish rally.

A close examination of the 1-day RSI formation reveals that Ethereum could sustain its bullish rally above the 1-day SMA and the bearish trendline toward the $3,400 resistance mark. The signal line of the indicator has moved out of the oversold zone and is heading to 50%.

Assessing Ethereum’s Upside Potential

If Ethereum starts a rally toward the $3,600 resistance level and closes above it, it may continue to move upward to challenge the $3,959 resistance. When this level is breached, the digital asset may experience a further price increase toward the $4,275 resistance level and possibly other levels above.

However, if Ethereum encounters a pullback at $3,460, it may start to decline toward the $3,151 support level. Additionally, the crypto asset may see further price declines to challenge the $2,895 support target and perhaps other levels below if this level is broken.

As of the time of writing, Ethereum’s price is trading around $3,333. It has increased by 2.73% in the past day, with a market capitalization of over $394 billion and a trading volume of over $11 billion. There has been a 24-hour increase of 4.11% in its market capitalization and a 27.64% decrease in trading volume.

Justin Sun’s Influence on Ethereum

Addresses potentially linked to crypto tycoon Justin Sun, creator of Tron (TRX) and former executive of Huobi (now HTX), have accumulated billions of dollars worth of Ethereum since February. On July 13, one of these addresses withdrew 14,436 ETH from Binance, worth $45.51 million.

SpotOnChain reported this recent activity, linking the Ethereum address ‘0x43594da‘ to Justin Sun. Previously, the wallet sent $45 million in Tether USD (USDT) to the exchange three days before the withdrawal. At that time, Ethereum was priced at $3,117 per token, and Sun could have purchased the token since then. By the withdrawal time, Ethereum was trading at $3,152, signaling a multi-millionaire position built with a 1.1% spread.

According to SpotOnChain, other addresses potentially owned by the crypto tycoon have accumulated 377,188 ETH since February 8. The report calculates a cost of $1.15 billion at an average price of $3,049 per token. Thus, so far, holding $50 million in unrealized profit, which is a 4.4% gain over the initial investment.

Who is Justin Sun?

Justin Sun is a prominent figure in the cryptocurrency world and rose to fame as the founder of the Tron blockchain. He has been a controversial figure known for his aggressive marketing tactics and bold claims. Despite this, he has shown interest in Ethereum’s ecosystem, particularly in decentralized finance (DeFi).

Sun’s relationship with Ethereum is complex. Tron was initially built on Ethereum before launching its own blockchain. Despite this, Sun remains involved in Ethereum’s ecosystem. He has acquired BitTorrent (BTT) and serves as an advisor to Huobi Global, a major cryptocurrency exchange now renamed HTX.

Sun’s recent actions, including large Ethereum purchases, have sparked speculation about his intentions in the crypto market. His ability to generate buzz and his substantial wealth have made him a closely watched figure in the industry.

In conclusion, Ethereum is gearing up for gains with several bullish indicators signaling potential upside. Key technical indicators on both the 4-hour and 1-day charts suggest a possible rally toward higher resistance levels. Additionally, influential figures like Justin Sun are making significant moves in the Ethereum market, further fueling speculation and interest. With a market capitalization of over $394 billion and a trading volume of over $11 billion, Ethereum’s price trajectory remains a hot topic in the crypto community.

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