Ethereum Realized Price Bands Show Potential For Short-Term Uptrend

Ethereum showed patterns of growth, aligning closely with the realized price bands. Ethereum’s price peaked during the 2021 bull run, reaching levels around the upper band of $5.2k.

This historical peak mirrored, where Ethereum briefly touched this upper band again in the recent period. This indicates a strong potential for growth if market conditions remain favorable.

The actual price of Ethereum was noted at $3.8k. It resided between the upper band and the realized price of $2.3k, which acted as a psychological midpoint for traders.

The divergence between the realized price and the market price suggested that Ethereum was undervalued. Or at least not fully valued at its potential peak.

As the market dynamics of supply and demand strengthened, Ethereum’s price could have escalated towards or even above the $5k mark.

This movement would not only align with previous price behaviors but also affirm Ethereum’s ability to sustain high valuation levels amidst varying market sentiments.

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This potential for upward movement was also supported by a stable base above the lower realized price band of $1.1k. This suggested a strong foundational support level for ETH’s market valuation.

Ethereum Price Short Liquidation Levels

Further analysis showed Ethereum saw short liquidation as it surged into key liquidity levels. Initially consolidating around $3949.89, Ethereum price showed resilience despite a volatility.

ETH broke through the resistance zone near $4037.58 with a sharp increase in trading volume and a corresponding rise in price, suggesting a strong buying interest.

During this period, the bid and ask ratio skewed. This shows a higher supply in the spot orderbook, which could typically pressure prices downward.

However, Ethereum price maintained the rally, efficiently absorbing the sell-side pressure. This coincided with the liquidation of short positions, indicating a high concentration of short trades being squeezed.

The price action led to a brief retest of the $4037.58 level before advancing further, suggesting a bullish sentiment among traders.

If this pattern were to continue, ETH could potentially challenge higher resistance levels, possibly aiming for previous highs or new peaks.

Ethereum’s Golden Cross on the Daily

Ethereum’s Golden Cross events where the 50-day moving average (MA50) crosses above the 200-day moving average (MA200), first cross in late 2023, sparking a trend reversal from a bearish to a bullish market.

Following this event, Ethereum price began to climb steadily, showing the potential predictive power of such technical patterns.

The subsequent Golden Cross in late 2024 reinforced this bullish sentiment, which could lead to a sustained uptrend in Ethereum’s market price into 2025.

During these periods, ETH/USD saw significant increases in trading volume, indicating heightened market interest and possibly new investments flowing into Ethereum.

The price action continued upward, culminating in Ethereum reaching highs above $6,800, far surpassing previous resistance levels.

These crosses were pivotal moments for Ethereum, as they were historically associated with prolonged periods of bullish activity.

If the pattern holds, ETH could be expected to test even higher resistance levels, potentially approaching or exceeding $7,000.