Ethereum Price News: Positive Momentum Could Lead ETH to $2,300

ETH has been the second biggest winner among the top 5 cryptocurrencies this past week with gains of 9.3%, only surpassed by its toughest rival in the smart contracts space, Solana (SOL), whose native asset surged by 18.5% during this same period.

Trading volumes in the past 24 hours have been relatively unchanged but open interest in ETH futures contracts has been increasing since the FOMC meeting as speculators have once again jumped on the wagon as this latest rally seems to have legs.

Despite the latest weakness that the crypto market has experienced and the significant number of competitors that are currently challenging Ethereum’s dominance of the smart contracts category, the network’s stablecoin balance has kept growing lately.

Data from Artemis shows that the amount of stablecoins held in the Ethereum network increased by 61.5% in the past 12 months and currently stands at $129.4 billion. Meanwhile, in the past 90 days – which have been bearish for the crypto market as a whole – stablecoin balances grew by 14.9% despite the downturn.

The number of daily active addresses on Ethereum has also been increasing in the past few days as traders have been drawn by the rally. Since the FOMC meeting, the 7-day moving average for addresses making transactions on the Ethereum blockchain jumped from 346,000 to 361,000.

Although this is a mild improvement, it is the strongest bounce that this metric has experienced in a month and a half.

Ethereum’s MACD Prints Highest Reading Since November 2024

Ethereum’s daily chart shows that a bullish breakout of a long-dated descending price channel took place on March 19. This first technical event could be marking the beginning of a trend reversal for the token, although it is still too early to call it that.

ETH found strong support at $1,500 during the early March sell-off and bounced strongly off that level.

Momentum indicators have been improving since then. The Relative Strength Index (RSI) sent a buy signal just a couple of days before the FOMC meeting and has now taken a fair distance from its 14-day simple moving average (SMA).

Meanwhile, the MACD’s histogram has posted its highest positive reading since the November rally, which emphasizes the strength of this latest rally.

If positive momentum continues to gain traction, ETH could rise to the $2,300 level quickly in the next few sessions meaning an upside potential of 11.5% from current levels.

Long Position Offers Attractive Risk-Reward Ratio

Heading to the hourly chart, Ethereum has been on an uptrend since last Friday and has already made multiple higher highs and higher lows along the way.

The latest spike took a breather after the American session ended yesterday but bounced off the 0.500 Fibonacci retracement level – meaning that the uptrend is still alive and well.

During the Asian session, the price retraced to the 0.382 retracement level and is already bouncing off that marker. This dramatically increases the odds that ETH will make a higher high during the American session.

If that’s the case, a long position with an entry price at the 0.382 Fibonacci, a stop price below the 0.500 retracement level, and a target at ETH’s nearest resistance would offer a highly attractive 3.1 risk-reward ratio.