Ethereum breaks $1,900 with a 5% jump. On-chain data supports a smooth climb to $2,000 and above.
With Bitcoin’s price crossing above the $99,000 mark, Ethereum is gaining momentum. After topping the $1,900 mark, ETH registered a 24-hour high at $1,916. This marks a critical breakout, signaling a potential Ethereum bull run ahead. Will this surge of bullish momentum drive Ethereum to the $2,400 mark?
Ethereum Price Analysis Signals Massive Breakout Run
Ethereum has surged nearly 5% today, forming a bullish engulfing candle and trading close to the $1,900 level. With a massive boost in buying pressure, Ethereum has surpassed the 50-day EMA at $1,853, marking the breakout of a long-standing support zone near $1,850.
The supply zone had kept bullish growth in check over the past couple of weeks. However, with the new bullish engulfing candle, the falling channel breakout rally in Ethereum, witnessed in late April, has finally begun.
Noting the upside potential, the MACD and signal lines remain in positive territory, showing a new wave of bullish histograms. This reflects an increase in trend momentum, signaling a smoother rally ahead.
The 23.60% Fibonacci level sets an immediate price target for Ethereum near the $2,000 psychological mark. However, the declining EMA lines suggest the next price targets are at $2,108 and $2,426.
If the broader market maintains its bullish momentum, the breakout at the 23.60% Fibonacci level will likely push Ethereum to the $2,400 level.
On the flip side, if buyers fail to hold the position, Ethereum could retrace to test the $1,600 mark.
On-Chain Signals Clear Path to $2,000
According to the global In/Out of the Money (GIOM) indicator by IntoTheBlock, Ethereum has shifted beyond the $1,858 zone. The newly formed in-the-money zone between $1,779 and $1,858 holds 7.65 million ETH owned by 7.35 million investors.
As Ethereum enters a new zone extending from $1,858 to $2,039, the uptrend will likely experience a smoother journey to $2,000. In the at-the-money zone, 8.14 million investors hold 5.76 million ETH at an average cost of $1,927.
While the path to $2,000 appears smooth, the next “out of the money” zone, up to $2,492, contains a massive supply of 69.61 million ETH owned by 12.72 million investors. As a result, a potential pullback could occur once Ethereum crosses above the $2,000 mark.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
