Ethereum Price Sees Early Signs of New Bullish Cycle Amid Ongoing Volatility
The Ethereum price has been under pressure after failing to hold above $2500, but it may be entering a new bullish cycle. The token's price has dropped below $2400 due to macro shocks and leveraged long liquidations.
However, the Ethereum price chart is showing a notable change in structure, with the token breaking above the $2,370 weekly structure. This level is crucial as it represents the first major weekly structure for Ethereum.
The breakout's conviction depends on the increase in trading volume and improving OBV (On Balance Volume), which remains below its peak. Open interest stands near 752K, indicating elevated derivative participation, but the price remains stuck at resistance due to excessive leverage.
Ethereum's technical setup is improving, with indicators showing a constructive trend. Exchange reserves have fallen to around 14.92 million ETH, reducing readily available selling supply if demand rises. Over 42 million ETH is currently staked, committing a substantial portion of the circulating supply to the network.
While some market data supports a new bullish cycle, others show that fresh demand still needs to return. The Ethereum price appears to be in an early stage of a new cycle, but reaching $4600 would require stronger buying pressure and confirmation of the breakout.