Ethereum price has regained the $4,700 mark, showing strong bullish momentum following its break above $4,000. The bounce is being driven by massive inflows and change in market mood, notably experts now targeting $7,331 as the next target.
Ethereum’s latest price jump of about 4% over 24 hours is proof of a strong market surge. This increase comes as the cryptocurrency broke through the crucial $4,000 resistance level for the first time in 1,146 days. The asset is up by 11% in the last seven days with a market cap of close to $570 billion and a 24-hour volume of about $40 billion.
Large Inflows Fuel Momentum
On October 6, Ethereum ETFs had $176.5 million in fresh on-chain inflows, showing better retail and institutional investor interest. That figure suggests an uptrending accumulation pattern, which changes ETH’s price action. Such analysts say that such inflows are happening during an even larger “Uptober” rally within the market, where Ethereum and Bitcoin have been seeing increasing price action.
Analysts Target Price of $7,331
Technical analysis indicates that ETH can target a 1.618 Fibonacci extension price of $7,331. This projection is based on the recent breakout and the establishment of strong support levels above $4,000. The 1.618 Fibonacci extension is the typical goal for price appreciation if the trend persists.
Nick Szabo claims that Ethereum’s utility cannot be equated to its price, whereas Bitcoin is mostly a store of value. Nowadays, though, bullish sentiment and interest may be indicating a change in attitude.
Market Sentiment and Future Outlook
Market sentiment has turned on its head with ETH’s price having broken beyond $4,700 following a period of limbo in the first half of the year. The turn is characterized by a move away from viewing Ethereum as a “dying” platform towards seeing it grow. The narrative surrounding ETH is still tenuous to market sentiment, as witnessed from its recent past.
Investors will be looking for the major support levels of $4,000 and $4,260. Staying above these levels will be important in terms of sustaining the bullish trend. If the current trend continues, ETH could soon approach the ambitious $7,331 target.
The recent price movement of ETH is directionally indicative of a critical transition in market dynamics, with solid technicals and inflows propelling the optimism. With the cryptocurrency moving through this period of radical transformation, the chances of getting to $7,331 remain on the horizon, subject to ongoing investor activity and market sentiment.
