Ethereum (ETH) shows strong momentum amidst a technical pattern that suggests increased trading volume, bullish community sentiment, and potential breakouts at $3,200.
Cryptocurrency, the world’s second largest market capitalization, has been in tears recently, rising 5.6% to $2,666 in the last 24 hours, with a 30-day increase of over 64%. The surge rekindled discussions about the main price targets, particularly the two unfilled CME futures gaps near $3,200.
CME gap and $3,200 target
According to Crypto’s pseudonym Crypto Trader Titan, such a gap “tends to be satisfied,” meaning that ETH’s gatherings are not over. The technical basis behind his argument finds support for historical price actions where such voids often act as magnets for future price actions.
These differences are usually created when the market starts a new week that is significantly higher than the previous week’s closure. Currently riding on a wave of bullish momentum, Ethereum appears to be targeting these levels next as long as it can overcome its main zone of resistance.
Analyst Michael Van de Poppe stepped out the weight on May 22nd, noting that Crypto Asset recently cleared its $2,400 resistance zone. “Ethereum is chasing Bitcoin and I think it’s going to cost over $3,000,” he said, highlighting the correlation between the two.
Nevertheless, some market watchers have made a careful insistence. As Cryptopotato recently reported, ETH has entered a “overheating state” with intense trading activity and profits of nearly $2,600. According to Cryptoquant’s on-chain data, Altcoin could face a short-term cooling period before resuming its upward trajectory.
Despite the potential suspension, there are still strong long-term convictions, with santiment data showing that less than 5% of ETH is currently retained in the central exchange, the lowest level in more than a decade. Additionally, last week, investment products linked tokens saw an influx worth $205 million, signaling the trust of the institutions that were updated following the Pectra upgrade.
Altcoin season on the horizon?
Meanwhile, the Crypto community is bustling, with YouTuber Crypto Rover linking Ethereum’s latest rise to the impending Altcoin season. Chris Burniske, who previously led Ark Invest’s Crypto Division, also pointed out the strength of ETH against BTC as a trigger for the ALT rally.
Cryptocurrency’s recent performance has seen a 37.4% increase over the 14-day period, with a 64% surge in the past month, surpassing the all-time high of 29%. According to digital asset investor Daan Crypto Trades, Ethereum’s next critical resistance is $2,850, at a level that can pave the way for the 3,200 cmme gap filling, if it breaks.
