Ethereum has gained bullish momentum since yesterday and is finally revisiting prices not seen since May 2018.
The second-largest digital asset has gained over 10% on a day-to-day basis, spurred by an eye-popping BTC run that saw it set a new all-time high.
ETH broke the $600 resistance after forming a strong support base near the $595 level. The bulls then took over the altcoin’s price action and drove the ETHUSD pair above $650. As of this article’s writing, ETH is up over 10% at its current price of $662.
ETHUSD Chart By TradingView
A successful close above the $650 zone could spark another rally towards the $680 level, above which the ETH price could test $700.
ETH is showing some immense signs of strength as the entire crypto market pushes higher, with BTC leading the way after its incredible run past $22K.
On-chain Indicators Send Bullish Signals
According to on-chain metrics, the current ETH rally still has potential for more upsides. For one, the number of new ETH addresses hit a single-day, 35-month high this past weekend, according to blockchain analytics firm Santiment.
“Our network growth metric picked up ETH reaching 177.5k addresses created. Notably more addresses interacting on an asset’s network is a very promising indicator for bulls,” the on-chain analytics firm tweeted while sharing the chart below.
ETH Price and Address Activity chart by Santiment
Another crypto investor reiterated ETH’s bullish sentiment in a recent tweet. He compared metrics in late-November of 2017, when Ether first hit $500, to those seen presently to prove the network’s astronomical growth.
The analyst highlighted growth indicators such as a rising hash rate, more assets locked in DeFi, and a surge in active monthly developers. These metrics suggest that the ETH price is in a far greater position to rally now than it was in 2017..
In the coming days, BTC’s price action will guide where ETH and other altcoins trend next. The king coin’s ongoing rally could create a tailwind that drives the leading altcoin higher, further perpetuating Ether’s fundamental strength.
A CME Futures Product Is Huge For ETH
As we reported yesterday, CME, the biggest US-based derivatives exchange, revealed it would launch ETH futures early next year.
This is extremely bullish news for ETH, as it shows that the asset is seeing increased demand from institutional investors.
Considering that Bitcoin’s rally is partly fuelled by success in the BTC futures market, rising interest in the Ethereum-based alternative could also send ETH to a new all-time high.