Key Takeaways
Ethereum’s Bullish Outlook
Ethereum’s latest rebound is drawing attention as on-chain and market structure data suggest the asset may still have room for another leg higher. Despite the recent volatility, Ethereum’s price has shown resilience, and several key factors are highlighting the possibility of a further rally. The upcoming Ethereum Merge, which is expected to significantly improve the network’s efficiency and scalability, could be a major catalyst for the price increase.
On-Chain Data Points to Bullishness
On-chain data, such as the increasing number of active addresses and the growing demand for Ethereum-based decentralized applications (dApps), suggests that the network is experiencing a surge in adoption. This increased adoption could lead to higher demand for Ether, driving up the price. Additionally, the declining supply of Ether on exchanges indicates that investors are holding onto their coins, anticipating a potential price increase.
Market Structure Supports Further Gains
The market structure of Ethereum also supports the possibility of further gains. The recent rebound has broken through several key resistance levels, and the asset is now trading above its 50-day moving average. This is a bullish sign, as it indicates that the trend is turning in favor of the bulls. Furthermore, the relative strength index (RSI) is not yet overbought, suggesting that there is still room for the price to increase before it becomes overvalued.
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