Ethereum has made a surprise comeback, jumping nearly 50% in the last 6 days. It dipped below $1,800 just days ago and is now pushing toward the $2,700 mark. The retail investors who were once doubtful are now looking for the right moment to jump in. So what’s next for Ethereum?
Santiment has recently shared some exciting insights on Ethereum’s comeback. Back in 2017, there was talk of Ethereum overtaking Bitcoin as the top crypto, thanks to its smart contracts and developer-friendly ecosystem. While that never happened, the debate over Ethereum’s potential to outshine Bitcoin’s first-mover advantage is still alive.
The social sentiment has also flipped fast. Right before this pump, the bears were in control, with many doubting Ethereum’s growth potential as other altcoins grabbed the spotlight. But as Ether got back on track, the doubters were silenced, with targets now calling for $3,500 or even higher.
Transaction Fees Drop
Another factor to watch is transaction fees. They’ve dropped to around $0.84 per transfer, much lower than the $7 range six months ago. But if the fees start climbing back to $2 or above, the rally could be at risk.
Lookonchain data shows that Abraxas Capital recently bought 33,482 ETH worth about $84.7 million on May 13. The firm has accumulated over 211K ETH, worth around $477 million, in the past 6 days, playing a big role in the recent price surge.
Ethereum’s rally has wiped out over $240 million in bearish bets in the past 24 hours, with total liquidations hitting $387 million. The technicals are mostly flashing green, with key moving averages like the 50, 100, and 200-day EMAs all signaling buy. The MACD also hints at more upside potential. However, the RSI is currently at 79, pointing towards potential pullbacks.
If the bulls remain in action, ETH could test the $2,750 resistance soon, pushing toward $3,000. However, if the bears take control, ETH could drop back to the $2,100 range.
Overall, Ethereum’s comeback is a reminder of the wild sentiment swings in crypto. The coin might still have room to run, but with its 30-day returns already at +32.5%, it’s worth keeping an eye on potential pullbacks. As always, a little patience can go a long way.
