Ethereum [ETH] has recently surpassed its immediate resistance levels after being below its moving averages since the end of July, a period during which it observed a death cross. The second-largest cryptocurrency has also witnessed increased discussions in the market over the past few weeks, alongside rising attention from traders in the derivatives market.
Ethereum’s Social Dominance on the Rise
According to Santiment’s analysis, Ethereum’s social dominance has seen a noticeable uptick recently. On September 21st, social dominance climbed above 10%.
Although it saw a slight dip to around 9.9% by September 23rd, this was the first time in approximately seven weeks that it reached such levels.
This increase signifies a surge in conversations surrounding Ethereum, indicating the heightened focus the asset is receiving. The rise in social dominance aligns with Ethereum’s recent price movements, suggesting a shift towards a more bullish market sentiment.
Ethereum Price Overcomes Short-Term Hurdles
Analyzing Ethereum’s price chart highlights the growing social interest in the cryptocurrency. Over the past week, ETH has recorded consistent gains.
On September 20th, it broke above its short-term moving average (yellow line) following a 3.90% increase, pushing its price to approximately $2,562.
As of the latest trading session, Ethereum was trading around $2,642 and briefly exceeded the $2,700 threshold. Additionally, the short-term moving average has now transformed into a stronger support level.
Further assessment points towards a crucial resistance level at $2,800. A successful breach could lead to a retest of the $3,000 mark. This uptrend has also piqued the interest of derivative traders.
Surge in Open Interest Volume
Another significant indicator of the positive momentum is the surge in Ethereum’s open interest. Recent reports indicate that open interest surpassed $6 billion on September 23rd, reaching its highest point in nearly seven weeks.
The increase in open interest indicates a flow of capital from derivative traders, likely influenced by Ethereum’s recent price surge. Should these optimistic signals persist, ETH may be on course to revisit the $3,000 price range in the near future.