The recent increase in Ethereum’s trading volume suggests strengthening institutional interest, increasing the likelihood of a renewed price rally.
Market sentiment is turning increasingly positive with large transactions totaling 2.83 million ETH, suggesting that Ethereum could be on track for a strong performance.
According to IntoTheBlock, this increased trading volume could push Ethereum’s price above critical resistance levels and offer important clues as to trading dynamics.
This article examines Ethereum's recent price action, increasing institutional interest, and promising technical indicators for ETH investors.
Growing Institutional Interest in Ethereum$ETH
Ethereum’s 10% price increase has pushed its value to around $3,422. This increase is largely a result of increased institutional activity. Recent on-chain data shows that the number of large transactions continues to increase, which is a significant indicator of strengthening market confidence.
Data from IntoTheBlock shows that Ethereum’s large transactions have reached 2.83 million ETH, representing a trading volume of around $11 billion. Historically, increases in the number of large transactions have often been associated with price increases, which is fueling expectations for Ethereum to rise above $4,500. Additionally, the Weighted Sentiment Index tracks market sentiment, and data from Santiment suggests that this index is approaching a positive threshold for Ethereum. A continued move in the positive territory could push the price of ETH even higher.
According to the 3-day ETH/USD chart analysis, the Accumulation/Distribution (A/D) line is steadily rising. This increase in the A/D line indicates strong buying activity and indicates the potential for Ethereum to break above the current resistance level at $3,982. If this resistance is broken, the price can be expected to rise to $4,110. However, if market conditions are favorable, Ethereum could also break above $4,500.
However, if Ethereum fails to surpass the current resistance, it could face downside pressure and the price could drop to the $3,178 level. Traders are advised to remain cautious and follow key indicators to analyze the price movement.