After reaching a low of $2,251 on September 16th, Ethereum [ETH] has shown a bullish trend. Presently, ETH is trading at $2,641, reflecting a significant 14.50% increase in the past week.
Prior to this upturn, Ethereum was experiencing a downward trend in the preceding month.
The recent change in market sentiment has triggered discussions among analysts regarding the sustained recovery and the factors driving this surge. Analysts believe the current uptrend is fueled by a surge in active buyers.
Market Sentiment Analysis
In their assessment, ChainStatsPro highlighted the rise in active buyers and spot limit bids.
According to the analysis, liquidation hunts in the future markets for ETH have persisted while filling spot-limit bids. Despite this, CVD remains steady, and bids and asks are accumulating within the range of $2400 and $2790.
This indicates that buyers are actively acquiring ETH at current market rates, indicating heightened demand. Traders are positioning themselves to buy at $2400 and sell at $2790, showcasing increased market activity through these order bids.
Further, the increase in active buyers and investors setting spot limits is evident from the surge in active addresses over the past seven days.
IntoTheblock reported that active addresses have surpassed 5 million in the previous week, indicating increased transactions and user engagement with the network. This surge in active addresses signifies a bullish market sentiment, correlating with higher price levels.
Insights from ETH Charts
ChainStatsPro observed a significant rise in transaction activity for ETH in the past week, propelling Ethereum towards a sustained upward momentum.
The surge in buying pressure is further supported by a positive Chaikin Money Flow (CMF). The current CMF for Ethereum stands at 0.28, indicating active accumulation by buyers.
Additionally, Ethereum’s OI-weighted funding rate has remained positive in the recent week, signaling a surge in demand for long positions where holders are paying shorts.
Therefore, with an increasing number of active buyers, Ethereum is set to capitalize on this positive market sentiment for further growth.
Should the current trend persist, ETH is expected to challenge the $2800 resistance level in the near future.