ETH Price Set to Surge above $1100 – The Bullish Wave Continues

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ETH Price Set to Surge above $1100 - The Bullish Wave Continues

A price increase of 60% marked the first trading days of the new year on the ETH market. The magic of the weekend never ceases to amaze.

It was on Sunday that buyers completely beheaded sellers, taking control of the range of $800-840 and setting a new local high. This range was our target in the previous article.

However, this turned out to be only a minimal plan. Buyers were able to accelerate the trend by breaking the global trend line of the black growth channel. In this channel, the ETH price has been moving since March 2020.

ETH
Source: Tradaing view

Buyers approached the critical range around the historical high of $1260-1360. It is from this range that the ETH price fall by 94% began in January 2018.

ETH trading volumes are confidently catching up with BTC

Trading volumes in the ETH market continue to increase. Ethereum continues to rank 3rd place in daily trading with a result of $66,876,851,164.

Though, to overtake BTC in volume and become the largest project in the crypto world, the target is more than achievable. The current situation in the BTC market hints at the price growth stop.

BTC growth stop provides oxygen for the ETH development. If we study the daily ETH price chart, we can see that the nearest liquidity zone is in the range of $560-600:

ETH

In this range, despite the price growth stop, trading volumes continued to grow. Buyers greedily bought the coin at local highs, trying to have time to get into the last car.

This liquidity zone is the main protection against a sharp reversal of the ETH price. Thus, if the nature of the price movement remains constant, sellers will be able to test the range of $800-840.

Gas price remains stable and does not hinder the DeFi development

Despite the active ETH price growth and the increase in the load on the Ethereum network, the gas price did not go beyond the stable range:

Source: Glassnode

This fact shows the positive dynamics of Ethereum 2.0 implementation and a bright future for scaling the DeFi ecosystem. The open interest of investors is growing and inspires the idea of ​​forming a global growth trend.

It is this fact that ensures the stability of the Ethereum platform. If we analyze the growth dynamics of validators, it is better than the growth dynamics of the ETH price:

ETH

The constant growth of validators and ETH wallets shows the increasing influence of coins in the crypto and DeFi world. This is evidenced by the Ethereum dominance, which finally exceeded the mark of 12.4%.

There are small things left – to pass the last obstacle $1260-1360, and we will see the same free flight of the ETH price as in the case of BTC.

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Peter Oleshchuk

Peter is a crypto analyst who after getting acquainted with the cryptocurrency market in 2017, immediately transferred it to the friend zone. Peter's passion is analysis and forecasting of the cryptocurrency market, including the DeFi space. In his articles you will find accuracy and prudence.

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