Ethereum price experienced a rapid surge on Wednesday, driven by a positive comment from Vitalik Buterin, the network’s co-founder. The second-largest cryptocurrency increased by 1.1%, although it still showed a 2% decline over the past seven days. Other digital assets, including Bitcoin, Cardano, and TRON, exhibited slight upward movements, suggesting a potential stronger bullish trend to come.
Ethereum Price Market Movers: Vitalik Buterin Bull Post, IOMAP Support, Declining Network Growth
Ethereum price spiked above $2,600 resistance during the US trading session on Tuesday after Vitalik Buterin took to the X platform with a post of a bull carrying a tag written: “Ethereum is good.” Buterin said that people had asked him to “do less philosophizing and do more ethereum bullposting.” Following the post, ETH price made a quick leg up, implying that an extended uptrend to $3,000 was likely this week with the right conditions.
I have been told that I need to “do less philosophizing and do more ethereum bullposting”. Hence, here is an ethereum bullpost, courtesy of stable diffusion 3 inpainting + gimp. pic.twitter.com/ZcPjNVImpn
— vitalik.eth (@VitalikButerin) August 21, 2024
As bulls gather the liquidity to uphold the reversal, IntoTheBlock’s IOMAP model directs attention to robust support between $2,292 and $2,373. Approximately 1.69 million addresses purchased 50.52 million ETH within this region, affirming the bullish case. This substantial cohort of investors is bullish on Ethereum, expecting it to yield greater returns, especially with decreasing selling pressure toward $3,000.
Ethereum IOMAP model
However, according to Santiment data, declining network growth may impede the anticipated breakout. Only 88.8k new addresses joined the protocol on August 20 compared to 196.72k on May 5. The persistent downtrend in the network growth metric suggests a sluggish ETH price forecast and perhaps an extended correction to the fundamental average support of $2,326.
Ethereum network growth | Santiment
ETH Price Analysis: Bulls Make A Comeback
Ethereum price bullish resurgence seeks higher support at $2,600. A daily close above this level will call more traders to buy ETH, looking forward to another recovery attempt, first to $2,800 and later to $3,000.
Traders must ensure the Moving Average Convergence Divergence (MACD) indicator sends a buy signal and commences movement above the neutral region to ascertain the uptrend. Other key levels to watch out for include the immediate 20-day Exponential Moving Average (EMA) and the 50-day EMA resistance, which will help avoid bull traps, which have been common in August.
ETH price chart | Tradingview
Two areas will determine the direction of Ethereum price in the coming days: The supply area below $2,800 and the demand area above $2,500. A break on either side of the range would mean a breakout above $3,000 or a sell-off to $2,326. For now, the pivotal $2,600 is critical for the resumption of the uptrend.
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