Ethereum [ETH] has recently surpassed a crucial resistance level after being below its moving averages since the end of July, a period where it encountered a death cross. The second-largest digital currency has experienced an increase in market discussions in recent weeks, coupled with rising attention from traders in the derivatives market.
Rising Social Dominance for Ethereum
Data from Santiment shows a significant uptick in Ethereum’s social dominance. On 21st September, social dominance rose above 10%.
While it experienced a slight decline to around 9.9% by 23rd September, this marks the first time in about seven weeks that it reached such levels.
This surge indicates a notable increase in conversations about Ethereum, reflecting the growing interest the asset is attracting. The rise in social dominance aligns with the recent price movements of Ethereum, indicating a shift towards a more bullish sentiment in the market.
Ethereum Price Overcomes Short-Term Barrier
Analyzing Ethereum’s price chart reveals the mounting social interest. In the past week, ETH has recorded continuous gains.
On 20th September, it broke through its short-term moving average (yellow line) after a 3.90% jump, driving its price to approximately $2,562.
By the close of the last trading session, Ethereum was priced around $2,642, surpassing the $2,700 level at one point. Additionally, the short-term moving average has now transformed into a more robust support level.
Further assessment suggests that the next significant resistance level is at $2,800. If ETH manages to breach this level, a retest of the $3,000 threshold could be on the horizon. This price upsurge has also piqued the interest of derivatives traders.
Increased Open Interest Volume
Another pivotal metric signaling positive momentum is Ethereum’s open interest. Recent data indicates a surge in open interest to over $6 billion on 23rd September, marking a seven-week high.
The spike in open interest implies an inflow of capital from derivative traders, likely fueled by Ethereum’s recent price rally. Should these encouraging trends persist, Ethereum might be gearing up to revisit the $3,000 price zone soon.