Top altcoin Ethereum (ETH) has experienced a price surge over the past 24 hours, surpassing the $3,600 mark. At the time of writing this analysis, ETH trades at $3,613, a level that was last seen in June.
This bounce was driven by massive trading volume that surpassed $43 billion in the past 24 hours, suggesting a sustained rally towards the psychological $4,000 mark.
Price surge hints at altcoin season
ETH trading volume totaled $43 billion in the past 24 hours. This surge in trading activity has pushed the altcoin’s value to a price last seen five months ago.
When trading volume rises along with price, it indicates strong market interest and confidence in the upward movement. This combination suggests that the price rally is supported by significant buying activity.
Thus, ETH’s high trading volume reflects increased market demand and broad participation, reducing the likelihood of a sudden reversal.
Ethereum price and trading volume. Source: Santiment
Furthermore, Ethereum’s recent surge suggests a potential shift into altcoin season. According to Blockchain Center’s Altcoin Season Index (ASI), the score now stands at 61 out of 100, bringing it closer to the 75-point threshold to signal the start of the highly anticipated period.
Altcoin Season Index. Fonte: Blockchaincenter
However, some profit-taking activity is already underway due to this price increase. This is reflected in the coin’s positive exchange net inflow volume. Recently, 54,974 ETH valued at over $199 million was sent to exchanges.
In short, exchange net flow volume measures the difference between inflows and outflows from exchanges over a specific period. When an asset’s net flow is positive, more coins are flowing into exchanges than are flowing out. This often signals potential selling pressure as traders prepare to sell.
This increase in supply on exchanges could weigh on the price if demand does not match the increased availability.
Ethereum net inflow volume. Source: Glassnode
ETH Price Prediction: Rally Towards Yearly High?
Despite this, the bullish sentiment in the Ethereum market remains strong, suggesting that the uptrend may persist. The Parabolic Stop and Reverse (SAR) indicator setup on the daily chart confirms this bullish outlook.
In short, this indicator identifies potential trend reversals and provides dynamic support and resistance levels. It places dots above or below the price chart. Thus, when the dots are below, they suggest an uptrend. Conversely, when the dots are above, they indicate a downtrend.
In the case of ETH, the SAR is below the price, signaling upward momentum and suggesting an uptrend. If it persists, the altcoin’s price could break the resistance at $3,669 and rally towards its year-to-date high of $4,093.
Ethereum price analysis. Source: TradingView
However, a decrease in bullish pressure will see ETH fall towards the support formed at $3,336.
The article Ethereum surges and is ready to trigger altcoin season appeared first on BeInCrypto Brasil.
