Ethereum nears its all-time high following its rebound on August 2. The 1-day chart shows it cruising past previous critical levels.
The altcoin is on the verge of registering its fourth day of consecutive increases. It broke above $4k on Friday, a milestone that caught the attention of many.
Social media platforms are teeming with reactions from many investors who expressed their delight over the latest event. Many said the watershed moment has been long-awaited.
The surge above $4k is unsurprising as a recent outlook pointed to this event. After noting that ETH may be off to a rocky start in August, the report cited the high likelihood of a surge above the highlighted mark.
Nonetheless, the altcoin attained another milestone a few hours ago. It surged from $4,010 and broke above $4,200. It peaked at $4,255 and trades slightly below it at the time of writing.
Ethereum bulls are showing no signs of exhaustion amid the recent increases. Liquidations show the bears bleeding in the Futures market. Data from Coinglass shows that traders lost over $352 million in the last 24 hours, with ETH accounting for over $203 million. Long positions made up less than 10% of the total REKT capital.
Nonetheless, the apex altcoin saw continued accumulation amid the surge. Lookonchain recently reported that Arthur Hayes “moved out 10.5M $USDC to buy back $ETH at a higher price.”
Several Bullish Predictions
A sweep through X shows many investors expressing their optimism about the next price action. Some speculate a surge to $8,000. Titan of Crypto presented a chart showing a symmetrical triangle and said Ethereum has finally broken out of the pattern. He said the next target is $8,000.
Ted noted that the altcoin is almost done with recovery mode and nears discovery mode, adding that the next price level is the previously highlighted level.
The talk of Ethereum has reached new levels following Eric Trump’s similar statement. Other analysts, such as Kame, pointed out several reasons to believe that such a hike is possible. He noted that ETH broke through a resistance trendline and 50 EMA on the bi-weekly chart. He also called attention to the moving average convergence divergence as a basis for this assertion.
All predictions are increasingly becoming ambitious, with many calling for a further 100% increase. While the crowd calls wins most times, they may also indicate a growing FOMO that may halt the uptrend.
What the Charts Say About Ethereum
Current readings from the 1-day chart indicate an impending trend reversal. Many of the charts floating on social media focus on previous price movements. The images indicate that ETH has broken out of or is about to break out of its pennant.
These charts do not always focus on prices. However, the relative strength index on the 1-day and 1-week scale is above 70. With Ethereum being overbought, it may see a notable retracement in the coming days.
However, RSI has peaked at 92 a few years ago. In January 2021, the metric attained the highlighted level. The second-largest cryptocurrency surged by over 2000% in the days after it crossed 70. A repeat of this event will guarantee a surge to $8k.
In the coming days, Ethereum will look to continue its surge. It is worth noting that there is a psychological barrier at $4,500.
