Ethereum rose by over 10% yesterday, which means an impressive recovery and a very bullish day for the entire cryptocurrency market. This surge has renewed optimism among investors, especially as Ethereum approaches its yearly highs.

Key data from CryptoQuant highlights a significant bullish signal: Taker Buy Ethereum purchasing volume reached an astonishing $1.683 billion in a single hour candle. This indicator reflects aggressive buying activity in the futures market, which further supports Ethereum’s potential for further growth.

The driving force behind the growing demand for Ethereum appears to be the withdrawal of profits from Bitcoin. As Bitcoin consistently breaks all-time highs, investors are reallocating profits into ETH, driving up its price. Ethereum’s ability to leverage Bitcoin’s momentum highlights its position as the second-largest cryptocurrency and a key player in the broader market trend.

However, the next few days will be crucial for Ethereum as it nears yearly highs. A powerful break above these levels could push ETH into a novel uptrend, further strengthening its bullish narrative.

Ethereum bulls are waking up

Ethereum bulls are finally showing signs of life after eight months of bearish price action, with the price up over 40% since November 5. This powerful upside momentum coincides with broader market growth, fueling optimism that Ethereum’s recovery is just beginning. The return of bullish sentiment has positioned Ethereum as a key focus for investors looking for opportunities in the current market environment.

According to data from CryptoQuant analyst MaartunnaTaker Buy volume on Ethereum recently reached $1.683 billion in a single hourly candle, highlighting the significant demand and involvement of high-volume trades.

This aggressive buying activity is a bullish signal, suggesting increased confidence in Ethereum’s potential to sustain growth. Forceful demand on this scale creates upward pressure on the price, strengthening the bullish narrative for ETH.

However, Ethereum still faces a critical hurdle at $3,550, a significant supply zone that has been a barrier since tardy July. The next few days will be crucial for Ethereum as a break of this key resistance could signal a continuation of its upward trajectory. However, failure to do so may result in short-term consolidation. All eyes are now on ETH as its next moves could set the tone for the altcoin market.

ETH holds above key levels

Ethereum (ETH) is trading at $3,333 after rising 10% yesterday, marking a significant rebound for the second-largest cryptocurrency. The price is testing a critical supply zone just below the $3,450 level, an area of ​​resistance that bulls need to capture to confirm the uptrend and maintain momentum towards novel highs.

This supply zone has historically acted as a key barrier, and breaking it with confidence would mean powerful buying pressure and the potential for sustained growth. Holding above the 200-day moving average (MA) at $2,959 further strengthens the bullish case for Ethereum, as this indicator is widely considered a benchmark for long-term price trends.

If Ethereum holds its position above the 200-day MA and decisively breaks above the $3,450 level, it could pave the way for a bullish rally, targeting higher resistance zones in the coming days.

However, failure to break this supply area could result in short-term consolidation as the bulls regroup to break this level again. For now, the market is focused on Ethereum’s ability to overcome this key resistance and continue its upward trajectory.

Featured image from Dall-E, chart from TradingView