Ethereum (ETH) has seen a major rally over the past week, gaining 29% and reaching a three-month high of $3,184. This rise has renewed expectations that Ethereum could be heading toward a yearly high of $4,095. Improving market sentiment and rising investor confidence are a few factors that could push Ethereum higher in the coming weeks.$ETH

Ethereum Holders Refrain from Selling, Reducing Selling Pressure
Ethereum’s coin holding period has increased by 40% in the past week. This metric measures how long a coin remains in an address before it is transferred and is an indicator of long-term investor confidence. Holders choosing not to sell their coins indicates confidence in Ethereum’s future value and reduces the impact of short-term price fluctuations. This generally helps keep the price more stable and can lead to increased demand when fewer coins are available for trading.

Short-term investors (STHs) are also choosing to hold Ethereum rather than sell it. Over the past month, STHs who have held Ethereum for less than 30 days have seen their coin holding period increase by 9%, indicating increased confidence in the asset and reduced selling pressure. Since short-term holders control a large portion of Ethereum’s circulating supply, fewer coins are available when they decide to hold onto their coins, which could be a factor supporting ETH’s bull market.

Ethereum-Based Products Attract Great Attention
Ethereum-based products continue to attract investor interest. According to a report by digital asset research firm CoinShares, Ethereum-backed crypto products saw an inflow of $157 million last week. This was the largest inflow since the launch of ETFs in July. CoinShares notes that Ethereum has seen significant interest even as it goes through a difficult period, which is a significant sign of improving market sentiment.

ETH Price Prediction: $4,000 Looks Possible
If the uptrend continues, the price of Ethereum may find support at $3,103 which could allow the price to rise to $3,337. If this level is broken, it could move towards the next hurdle at $3,671. If this level is broken, the price of Ethereum may continue to rise towards $4,095.

However, if selling pressure increases, this bullish view could reverse, in which case the price of ETH could pull back below $3,000 and potentially drop to $2,869.