The march of Ethereum continued as it crossed a new all-time-high with a price of $3,770. That’s a significant 3% jump in just the last 24 hours alone! This rally is a powerful continuation of a huge resurgence in the Non-Fungible Token (NFT) market. Prices have exploded, up an amazing 50% since the bottom of $2,525 on July 6. The recent resurgence of interest in NFTs on the Ethereum blockchain has dramatically increased daily trading volumes to $75 million. That’s an unbelievable 300% jump since just two weeks ago.
Ethereum’s recent stellar performance certainly shows that bullish momentum is at play and there is a strong bullish confidence in Ethereum’s ecosystem. Despite yesterday’s bullish rally, market analysts are still looking at important support and resistance levels. They’re looking at technical indicators to see if this upward trajectory is sustainable.
Technical Indicators Point to Continued Bullish Momentum
On the Ethereum daily chart, ETH has managed to clear the daily resistance level at $3,730. This area is now an extremely important backstop for holding this rally underway. If Ethereum can hold this level as support, it may be able to continue making its way towards the $4,000 range.
The Moving Average Convergence Divergence (MACD) indicator still shows a bullish crossover that started in early July. This indicates that the increase has a good chance of continuing in the short term.
The Relative Strength Index (RSI) on the daily chart is now 86. This number far exceeds the traditional overbought level of 70. If true, this would be a bearish indication that Ethereum is overextended. This rally has been impressive, enough to suggest it will be able to hold these levels at least for a while. We see this clearly in the green histogram bars which consistently rise above the neutral zero line. This is evident in that bullish momentum is strengthening, not letting up.
NFT Market Revival Drives Demand
Ethereum’s NFT market, in particular, is having a robust resurgence. This recent resurgence is helping to drive the price of this cryptocurrency. Trading volumes have spiked all the way up to $75 million. That’s an astounding 300% jump from the $18.3 million reported only two weeks earlier.
NFTs are back, baby! This rapid growth is primarily due to greater institutional adoption and a growing consumer demand for exclusive digital goods. Most recently, an on-chain whale bought 45 CryptoPunks NFTs inflating their floor price to almost $175,000.
The average floor price of CryptoPunks at the moment is just below $175,000. This important jump illustrates the hot demand for premium NFT assets, especially within the booming Ethereum ecosystem. This acquisition is more than just a cultural statement. It continues to show institutional confidence in the NFT market and their long-term value.
Expert Analysis and Market Sentiment
Per market experts such as crypto trader Michaël van de Poppe, Ethereum’s recent rally is “truly spectacular.” The general mood across the Ethereum ecosystem is one of renewed confidence and optimism.
Whether Ethereum is able to hold onto the $3,730 level as support will be key in deciding where it heads next. In the scenario of a correction, the $3,000 barrier seems likely to be the stronghold support barrier.
