Leading altcoin Ethereum (ETH) has seen a significant price increase over the past 24 hours, surpassing $3,600. As of this writing, ETH is trading at $3,613, the price it reached in June.
This recovery was fueled by huge trading volume exceeding more than $43 billion in the past 24 hours. This suggests a sustained rally towards the psychological price level of $4,000.
Ethereum Price Rise Shows Altcoin Season Is Coming
ETH trading volume has reached $43 billion in the past 24 hours. This increase in trading activity has pushed the price of the coin to levels not seen in the past five months.
When an asset’s trading volume increases along with its price, it shows strong market interest and confidence in growth. This combination suggests the rally was supported by significant buying activity, making it more sustainable.
So ETH’s high trading volume reflects an increase in market demand and widespread participation. This reduces the possibility of a sudden reversal.
Furthermore, Ethereum’s recent rise hints at a potential shift towards altcoin season. According to Blockchain Center’s Altcoin Season Index (ASI), the current score is 61 out of 100, close to the 75 point mark to signal the beginning of the anticipated period.
Notably, some profit-taking has begun to take place due to this price increase. This is reflected in the coin’s positive net flow volume on the exchange. On Wednesday, 54,974 ETH valued at over $199 million was sent to exchanges.
The net flow volume index measures the difference between flows into and out of exchanges over a specific period of time. When an asset’s net flow is positive, more coins are moving into exchanges than leaving, often signaling potential selling pressure as traders prepare to sell.
An increase in supply on exchanges could put pressure on prices if demand does not match the increase in availability.
ETH Price Forecast: Growth Approaches Yearly High
Despite this, the overall bullish sentiment in the Ethereum market remains strong, suggesting that the uptrend may continue. The setup of ETH’s Parabolic Stop and Reverse (SAR) indicator, evaluated on the daily chart, confirms this optimistic outlook.
This indicator identifies potential trend reversals and provides dynamic support and resistance levels. It places points above or below the price chart: points below the price indicate an uptrend, while points above indicate a downtrend.
As in the case of ETH, when the SAR is below the price, it signals bullish momentum and hints at an uptrend. If the uptrend persists, ETH price could break resistance at $3,669 and move towards a yearly high of $4,093.
Conversely, if bullish pressure decreases, ETH price will fall towards the support formed at $3,336.