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

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.

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.

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.