Ethereum (ETH) has recently experienced a notable price surge, trading above the $2,700 mark in the last trading session. This upward movement comes after a period of consolidation below its moving averages since late July, during which ETH witnessed a death cross. The second-largest cryptocurrency by market capitalization has not only broken through its short-term resistance but has also seen a significant uptick in market chatter and interest from derivative traders.
The recent price action has been particularly bullish, with ETH breaking above its short-term moving average on 20th September following a 3.90% increase that pushed its price to around $2,562. By the end of the last trading session, Ethereum was trading at approximately $2,642 and even surpassed the $2,700 mark at one point. This price increase has also led to the short-term moving average flipping to become a stronger support level, indicating potential for further gains.
Rising Social Dominance
Ethereum’s social dominance has also seen a significant increase recently. According to analysis from Santiment, Ethereum’s social dominance rose to over 10% on 21st September. Although it slightly dipped to around 9.9% by 23rd September, this marks the first time in about seven weeks that it reached such levels. This rise in social dominance indicates a surge in discussions about Ethereum, reflecting the heightened attention the asset is receiving.
The increased social dominance correlates with Ethereum’s recent price movements, suggesting that market sentiment is turning more bullish. This heightened attention and positive sentiment are likely contributing factors to the recent price surge, as more investors and traders become interested in ETH.
Breaking Short-Term Resistance
Examining Ethereum’s price chart provides further insights into the growing social interest and bullish sentiment. Over the past seven days, ETH has seen consecutive gains, breaking above its short-term moving average on 20th September. This move was accompanied by a 3.90% increase in price, pushing ETH to around $2,562. By the end of the last trading session, Ethereum was trading at approximately $2,642 and even surpassed the $2,700 mark at one point.
Further analysis indicates that the next critical resistance level for Ethereum is at the $2,800 price mark. If ETH manages to break through this level, it could potentially retest the $3,000 threshold. This price increase has also boosted interest from derivative traders, as evidenced by the rising open interest in Ethereum futures.
Increased Open Interest
Another key indicator showing positive momentum for Ethereum is the increase in open interest. Recent analysis reveals that open interest climbed to over $6 billion on 23rd September, the highest in about seven weeks. This surge in open interest suggests an influx of funds from derivative traders, likely motivated by Ethereum’s recent price rally.
The increase in open interest is a positive sign for Ethereum, indicating that more traders are entering the market and taking positions in ETH futures. This influx of funds and interest from derivative traders could further support Ethereum’s price and potentially lead to a retest of the $3,000 price range.
Conclusion
In conclusion, Ethereum’s recent price surge above the $2,700 mark, coupled with increased social dominance and rising open interest, indicates a bullish sentiment in the market. The breaking of short-term resistance and the potential to retest the $3,000 threshold suggest that ETH could see further gains in the near future. As more investors and traders become interested in Ethereum, the positive momentum is likely to continue, supporting the cryptocurrency’s price and market position.
