Ethereum (ETH) is experiencing a strong surge, breaking past the $3,200 mark and hitting new all-time highs. Recent data reveals a shift in market sentiment fueled by expanded DeFi applications and increased institutional investments. The price rally has been further propelled by a breakout from a falling wedge pattern near $3,000, indicating potential for continued growth.
Despite recent gains, ETH still faces resistance at the 200-period SMA, which coincides with a significant on-chain cost basis cluster of 5.1 million ETH. However, positive technical indicators like a flipped MACD histogram and a close above the falling wedge are indicative of bullish momentum.
Market data highlights a concerning decline in ETH treasury demand, down to 370,000 ETH in November, a significant drop from its August peak. This trend suggests a weakening structural bid for Ether. Despite this, notable investments by firms like BitMine indicate continued interest.
Key technical indicators show promising signs of continued growth.
The current price level is supported by the 50% Fibonacci retracement at $3,141 and the 7-day SMA at $3,013. The MACD histogram has flipped positive for the first time since Nov. 22, reinforcing improving momentum. However, with a RSI near 52, ETH may experience consolidation before challenging higher resistance.
Moving forward, the next key level to watch is support above $3,100–$3,200, which would confirm the recent breakout and stabilize confidence. A sustained break above this region could signal renewed institutional interest.
Overall, Ethereum’s price surge underscores bullish trends in the market. However, continued vigilance regarding factors like treasury demand and resistance levels remains crucial for informed trading decisions.