As the price of Ethereum enters the early stages of yet another bullish rally, it has regained its energy. Following a long period of suffering in September, the price of ETH had fallen below $3,000, leaving the digital currency in a precarious position as bears tightened their grip on the market. The reduced interest did not improve matters, as the market had returned to a state of great fear.
Cryptocurrencies have started to regain their lost value from the previous month less than a week into October. Ethereum has risen 3.14% in the past 24 hours, putting it on track to test the resistance level of $ 3,500.
During the month of September, this price point gave substantial resistance to the asset. However, as market sentiment improves this month, recovery trends point to a target of $ 4,000.
Bullish Indicators for ETH
ETH market dominance
The market has become more crowded as ETH has grown in popularity. The current market dominance of Ethereum is 18.42. Still less than half of the bitcoin market, but up 1% from last month’s 17% low. The rise means more people will use the asset, which will lead to a price increase.
Technical indicators
The IntoTheBlock Global In / Out of the Money (GIOM) pattern, which shows little to no resistance for ETH above $ 3,815, adds to the bullish picture.
Approximately 1.95 million addresses are “Out of the Money” after purchasing 3.17 million ETH at an average price of $3,815 each.
Thus, a decisive close above $ 3,815 will make a majority hold profitable and ease the selling pressure.
This development has the potential to set off a tremendous bull run for ETH, sending it over its all-time high of $4,380 and toward the $4,816 objective.
However, the short-term flash collapse thesis is supported by the 365-day market value to realized value (MVRV) model.
The 365-day MVRV is now hovering around 50%, meaning that moreover half of the market participants who purchased ETH are profitable.
As a result, these investors may decide to take a profit, causing the price of Ethereum to drop in the short term.
