- Ethereum hits the $7K milestone, signaling potential bullish movement and breakout possibilities.
- A descending wedge pattern and key resistance levels suggest possible price rally.
- Growing network activity and declining exchange reserves indicate increased investor confidence in Ethereum.
Ethereum—ETH, hit a major milestone, reaching $7K in a key metric. This level marks a critical point, signaling possible bullish movement. Currently trading at $3,397, Ethereum has gained 5.76% in the past 24 hours. Many are now watching closely to see whether a price surge will follow.
Ethereum Breaks Out of a Descending Wedge?
The daily chart shows Ethereum trapped in a descending wedge pattern. This setup often leads to bullish breakouts. Right now, the price is testing resistance at $3,495. If Ethereum breaks through, a rally could follow, driving the price toward higher targets. However, if the price fails to break this resistance, consolidation may continue. A failure to break above $3,495 would delay recovery and keep the price range-bound for longer.
Key Metrics Show Growing Bullish Sentiment
Ethereum’s taker buy-sell ratio is at 1.003, showing a slight preference for selling. Yet, the ratio’s 0.96% increase suggests buyers are gaining momentum. If the ratio continues to rise, Ethereum could break through resistance levels.
Ethereum’s network activity also supports a bullish outlook. New addresses grew by 55.07% in the past week. Active addresses increased by 9.39%. Meanwhile, zero-balance addresses have fallen by 52.98%, showing that holders are accumulating rather than selling. Exchange reserves dropped by 0.17% to 19.29 million ETH, signaling that traders are moving tokens off exchanges. This indicates stronger long-term confidence among investors.
With growing network activity and declining exchange reserves, Ethereum is showing signs of upward momentum. A breakout above key resistance could fuel further gains. Ethereum appears poised for a gradual rise, and the $7,000 milestone might be just the beginning.
