Ethereum (ETH), the second largest cryptocurrency by market capitalization, has recently achieved a key milestone, breaking through the $3,600 mark for the first time since June. There is a possibility of further gains, and it is expected to climb to $4,093. Its subsequent price trend deserves close attention.
Trading volume validates bullish momentum
Ethereum's trading volume reached $43 billion in the past 24 hours, providing strong support for its price trend. This large market participation reflects real buyer interest rather than pure speculation, and when trading volume rises in tandem with price, it often means that its price rebound is more sustainable with broader market support.
Correlation with altcoin season
Ethereum’s surge in price comes as evidence mounts that altcoin season is on the horizon. Blockchain Central’s Altcoin Seasonality Index has reached 61 out of 100, approaching the critical 75-point threshold that traditionally marks the start of an altcoin market cycle, signaling the potential for further gains for Ethereum as market attention shifts toward alternative cryptocurrencies.
Profit-taking and its impact
Despite the rise in Ethereum prices, there has been some profit-taking. Net exchange flows data showed that 54,974 ETH (worth over $199 million) flowed into exchanges on Wednesday, which may indicate selling pressure, but even so, the overall market sentiment remains clearly positive.
Technical analysis supports bullish outlook
From a technical analysis perspective, the Parabolic Stop and Reverse (SAR) indicator shows that it is well positioned below the price curve, and this technical pattern suggests that Ethereum will continue to maintain its upward momentum, and it is possible to challenge the resistance level of $3,669 first, and then aim for the highest point so far this year at $4,093. Of course, traders need to keep an eye on the support level of $3,336, which may come into play once the buying pressure subsides.
However, while a combination of strong trading volume, positive technical indicators, and the broader market cycle provide a strong case for Ethereum's continued appreciation, it is still crucial for traders to keep a close eye on transaction flow and various support and resistance levels.