Ethereum is trading close to its highest value last week. It is also printing one of its longest green candles following trading action on Friday.
The altcoin opened the day at $4,224 and saw a gradual spike in buying pressure that resulted in a steady price rise. However, the 4-hour chart shows that the main spike came in the afternoon, suggesting that there was a trigger.
Nonetheless, the asset is trading at $4,766 at the time of writing, indicating that it is over 12% higher than its opening price.
A massive shift in the Federal Reserve’s stance was the trigger for the latest hike. It is worth noting that recent data from the US spread fears of no rate cuts in 2025. However, Jerome Powell’s recent statement allayed these concerns.
In a briefing with the press, the chairperson stated that the situations across the economy could force the feds to cut rates. His announcement came as a surprise to investors who were prepared for the worst. The ensuing reaction is the massive spike across the market.
Nonetheless, crypto derivatives registered another wipeout. Data from Coinglass reveals that traders lost a whopping $412 million in the last 4 hours. Short positions accounted for over $348 million. Away from the general liquidations, most Rekt capital was on ETH; losses from those trading the coin exceeded $251 million.
Filling the CME Gap
Aside from the thrills of the latest fundamentals, the largest altcoin recently had another phenomenon that may translate to further price increases.
Ethereum created a CME gap two weeks ago, between $4,100 and $4,200. Traditionally, such a gap will need filling, and the fill-up came on Tuesday when it dropped to a low of $4,066 from $4,356.
ETH has no other CME gaps after $4k. This means that the path to a new all-time high is clear. Nonetheless, the apex altcoin will $5k in the coming days and edge closer to $6k.
Recent on-chain data provides more reasons for this assertion. The Coinglass TH/USD orderbook has sparse orders exceeding $6k, suggesting that some investors believe in these prospects already.
Ethereum Surges Past $4,800
Ethereum registered another high a few minutes ago. It crossed $4,800 for the first time since 2022, sparking hopes of a new all-time high. However, current price action suggests that this might not be the case as it is seeing a slight pullback.
ETH trades at $4,777 at the time of writing, dropping a few dollars from $4,849. The 4-hour chart indicates that the correction may extend as the indicators flip negative. One such is the relative strength index. It is at 73, indicating that the altcoin is overbought.
Aside from RSI, the Bollinger bands indicate that the altcoin will retrace further. The asset is trading above the upper band following its breakout a few hours ago. Nonetheless, the metric suggests a steeper decline in the coming days. Price may drop to the mid-band around $4,300.
However, the 1-day chart hints at a slim chance of another upward move this week. Bollinger’s upper band is at $4,932, showing room for a new all-time high within the next 48 hours. It is worth noting that the relative strength index on this scale supports this claim, as it currently trends at 66.
