Ethereum price forecast: This $3.6B signal could drive ETH to $5k in April

FXEmpire.com -

Ethereum (ETH) has price surged above $3,584 on March 28, on course to end the month with gains in excess of 10%, if the bulls can avoid a reversal below $3,500.

On-chain data shows that deepening market liquidity and rising whale interest has been a major catalysts behind the ongoing ETH rally.

What are the chances of ETH price breaking into new all-time highs above $5,000 in April 2024?

Ethereum sets trading volume record with $3.6 billion move

Ethereum price action for March 2024 has been fairly positive, with 10% monthly gains recorded as of March 28. ETH price had surged to a peak of $4,092 before  the post Dencun upgrade sell-off triggered a 30% downturn.

However, despite the torrid price action, Ethereum markets set another bullish record in terms of a prolonged uptick in liquidity and investor interest.

The Santiment chart below tracks the historical trends of Ethereum daily Transaction volume.

Ethereum (ETH) price vs. Transaction Volume | March 2024 | Source: Santiment

The chart above shows that ETH Transaction Volume has recorded new peaks in each of the last 5 months dating back to November 2023.

Ethereum recorded its latest peak of $15.44 billion trading volume recorded on March 5. Historical data shows that this is $3.6 billion from last months peak of $11.8 billion recorded on Feb 28.

A persistent surge in transaction volumes indicates a steady growth in market liqudity and market depth and bullish sentiment. Hence, while ETH price has struggled to maintain its upward momentum in March 2024, the rising trading activity suggests a major breakout above $4,000 could be on the cards in April.

Ethereum (ETH) Price Forecast: Bulls could target $5k in April

The increased market depth from the $3.6 billion spike in peak ETH trading volume trends between February and March suggests that Ethereum price is likely to hold firm above $3,500 in the weeks ahead.

IntoTheBlock’s global in/out of the money data which groups all existing ETH holders by their entry prices also affirms this stance.

Ethereum (ETH) Price Forecast | March 2024 | Source: IntoTheBlock

The current data shows that 3.78 million existing holders had acquired 7.07 million ETH at the average price of $3,534.

If they hold firm, they could possibly trigger an Ethereum price breakout towards $5,000 in the weeks ahead.

But on the downside side, Ethereum bears could invalidate that bullish prediction if ETH price tumbles toward $3,300.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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