Ethereum's Bull Run Pauses — But Indicators Show Another Rally Is Coming

Ethereum is approaching the long-awaited $4,000 mark, but the upward momentum seems to have temporarily paused.

Although the market has shown signs of saturation, Ethereum has not yet ended its upward trend. The recent adjustment may just be a short-term pause before continuing to grow.

Ethereum is showing signs of a price increase

Ethereum's trading volume is increasing strongly, indicating that small investors are showing interest again. Although Ethereum's price ratio to Bitcoin has dropped nearly 6% this week, the increase in trading volume reflects a pattern seen in May this year. This sudden surge usually signals a local peak, but this time may be different.

If both trading volume and social volume decrease in the remaining part of the week, this could indicate that the market is preparing for a new price increase. The impatience and profit-taking behavior of small investors could create conditions for the next price wave.

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Considering broader technical indicators, NUPL (Net Unrealized Profit/Loss) suggests Ethereum is preparing for a significant price increase. The NUPL indicator, when reaching the 0.5 threshold, typically signals a pause in the upward trend, followed by a strong surge.

Ethereum is currently approaching this threshold, which in the past has marked the beginning of a strong price increase. As the NUPL indicator continues to rise, it provides a strong historical precedent for Ethereum's next price increase.

ETH price is standing still

Ethereum is currently trading at $3,666, just 9% away from the important $4,000 resistance level that many investors have been waiting for over the past seven months. This altcoin is expected to continue its upward trend despite the recent adjustment, with the potential to surpass $4,000 soon.

The continuation of the price increase is supported by strong market sentiment and technical indicators. As long as Ethereum maintains its important support levels, the price is likely to rise to $4,000.

If Ethereum can maintain its momentum, breaking through the $4,000 mark could be a catalyst for further price increases.

However, if an unforeseen selling pressure occurs, Ethereum's price could drop below the $3,530 support level. In that case, Ethereum could fall to $3,131, invalidating the current price increase prospects. It is crucial to maintain support and leverage the increase from small investors.