Ethereum On Fire: Scarce ETH Ready For $4,000?

Ethereum is following Bitcoin, looking at price action. After concerns over the past few days, ETH prices are tracking higher. When writing, not only are prices approaching $3,700, but bulls are rampant and firmly in control. As it is, traders can search for entries to ride the trend, especially if attempts for lower prices are soaked in. 

At press time, buyers are in control. ETH is up 6% on the last trading day and 8% on the previous week. As interest rises, the average trading volume is also expanding, adding 110% to over $20.8 billion. Based on the current setup, buyers are in a solid position if prices are inside or above yesterday’s range.

Ethereum buyers are upbeat, but the following news might further drive demand:

• In the past 24 hours, on-chain data shows more whales moving ETH from exchanges. The more coins are shifted, the more bullish prices are. These whales likely plan to engage in decentralized finance (DeFi) and other activities only possible on platforms like Ethereum.
• EigenLayer is on fire. Data reveals that roughly 3% of ETH’s total supply has been locked in this re-staking protocol, surpassing $12 billion. The more coins locked, the scarcer it becomes—a net positive for prices.

Ethereum Price Analysis

Bulls are squarely in charge following the welcomed expansion on April 8.

While $4,000 is a key price level buyers must conquer, the rise of ETH/USD above $3,700 is critical.

If prices stay above this level, risk-off traders can double down on dips, targeting March 2024 highs of $4,090 in the sessions ahead.

This preview will only change if prices slip below $3,400.

In that case, prices will drop back to a range and turn bearish, with further losses toward $3,200 possible.