Ethereum surpasses a critical resistance level of $2,500 and is aiming for $2,700 as the upper limit of the short-term trading range.
In contrast to the Bitcoin price, which has largely been consolidating since the ETFÂ approval, Ethereum has been exhibiting robust upward momentum, effectively narrowing the gap with BTC.
With a market cap of $308 billion, Ethereum is currently trading at $2,564, representing an increase of 1.44%.
Pricing Dominance of Ethereum
Based on the findings presented by Santiment, an on-chain data provider, Ethereum has witnessed a significant surge in price dominance relative to Bitcoin, with a growth of +22.4% in the last week.
However, the creation of 89.4K new Ethereum addresses per day during this time further demonstrates the platform’s increasing popularity.
Yesterday alone witnessed the creation of a remarkable 96,3K wallets.
In conjunction with these on-chain activities, Santiment’s data shows a notable trend in the supply of Ethereum on exchanges, which is approaching its All-Time Low of 8.05%.
Meanwhile, the adoption of self-custody and staking suggests a diminished likelihood of an impending selloff, which is a more advantageous situation in contrast to the concerns that stem from an increasing supply on exchanges.
The on-chain dynamics provide insights into the present market strength of Ethereum and the possible ramifications that this may have on future price movements.
ETH Price Action Moving Forward
During the recent trading session on Tuesday, the price of Ethereum encountered an initial minor decline, putting it on the line with a significant test at $2,500.
Notablely this level, which had previously functioned as a substantial barrier, is presently exhibiting considerable support for the cryptocurrency.
The price action indicates that Ethereum is attempting to enter a phase of consolidation.
Additionally, the $2,700 threshold, which signifies the upper limit of the short-term trading range, becomes a significant milestone.
A breakthrough at this level could pave the way for a potential market rise, with Fear of Missing Out (FOMO) traders likely to participate, according to analysts.
Upon surpassing $2,700, the price of Ethereum has the potential to increase to $3,400.
On the contrary, Ethereum could retreat if it fails to surpass the hammer level established during the Monday trading session.
If this were to occur, the cryptocurrency could potentially experience a decline in value towards the 20-Day Exponential Moving Average (EMA), which is located approximately at $2,300.
Traders are diligently observing these pivotal levels in anticipation of possible fluctuations in the short-term course of Ethereum.
