With the price of Ethereum entering the early stages of another bullish rally, it has regained its energy. After a long period of suffering in September, the price of ETH fell below $3,000, leaving the cryptocurrency in a precarious position as bears tightened their grip on the market. The drop in interest did not improve matters, as the market returned to a state of extreme dread.
Cryptocurrencies began to regain their lost value from the previous month in less than a week until October. Ethereum is up 3.14 percent in the past 24 hours, putting it on track to test the $3,500 resistance level.
During September, this price point gave significant resistance to the asset. However, as market sentiment improves this month, recovery trends point towards a target of $4,000.
ETH . Bullish Signs
ETH . market dominance
The market became more crowded as ETH grew in popularity. Ethereum’s current market dominance is 18.42. It’s still less than half of the bitcoin market, but 1% above last month’s low of 17%. A rise means that more people will use the asset, which will lead to an increase in prices.
The IntoTheBlock Global In/Out of the Money (GIOM) pattern, which shows little or no resistance for ETH above $3,815, adds to the bullish picture.
Nearly 1.95 million titles “ran out of money” after buying 3.17 million ETH at an average price of $3,815 per address.
Thus, a decisive close above $3,815 will make the majority of the shares profitable and ease selling pressure.
This development has the potential to trigger a massive bullish trend for ETH, sending it above the all-time high of $4,380 and towards the $4,816 target.
However, the short-run collapse thesis is supported by the 365-day realized value market capitalization (MVRV) model.
The 365-day MVRV is now hovering around 50%, which means that more than half of the market participants who have bought ETH are profitable.
As a result, these investors may decide to take profits, which will lead to a short-term drop in the price of Ethereum.