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Ethereum Rally Pauses, but Indicators Suggest Further Growth
Ethereum's price is approaching the coveted $4,000 mark, but the rally has temporarily paused. The market shows signs of saturation, but Ethereum’s growth may not be over. The current consolidation is likely a short-term pause before the next leg up.
ETH Shows Signs of a Rally
Ethereum trading volume has surged, indicating renewed interest from retail investors. The ETH/BTC price ratio has dropped nearly 6% this week, and the spike in trading volume resembles the pattern from May. Such surges often precede local tops, but this time could be different.
If trading volume and social activity decline by the end of the week, it could indicate the market is preparing for a new bullish breakout. Retail investors’ impatience and profit-taking may set the stage for the next wave of growth.
The NUPL (Net Unrealized Profit/Loss) indicator suggests ETH is preparing for a significant rally. When NUPL hits the 0.5 threshold, it historically signals a pause in the uptrend followed by a sharp rally. The price is now approaching this level, which previously marked the beginning of strong upswings. NUPL continues to climb — a strong historical precedent for a potential rally.
Ethereum Price Stalls
ETH is currently trading near the critical $4,000 level. Investors have been waiting for a breakout for more than seven months. Despite the current consolidation, the token is expected to resume its upward movement and soon break this barrier. The bullish trend is supported by positive market sentiment and technical indicators. As long as Ethereum stays above key support levels, it has a chance to reach $4,000.
If ETH maintains its bullish momentum, a breakout above $4,000 could fuel further gains. However, if an unexpected sell-off occurs, the price may drop below the $3,530 support level, potentially falling to $3,131 — invalidating the current optimistic outlook. Bulls must defend this support and leverage the momentum from retail investors.
See also: "Technical Indicators Point to Bullish Momentum for Bitcoin"
