Ethereum (ETH) has been quite the center stage of attention in the crypto market recently. While it had previously struggled over the weekend, the bullish rally is way far beyond over as confirmed by the data. Today, ETH has surged by over 2.7% suggesting the recent dip was nothing but a mere correction. 

But, there is still chatter about whether it will rise to $4,000 this time round or slide further. To have a clear picture of Ethereum, let’s see where on-chain data points us to, at least for the short-term. 

ETH Rallies Above $3,600 Level After Dip 

Despite the recent slip up that saw Ethereum drop to $3,400 level, the ‘king altcoin’ has now picked up the pace yet again. On the day, the price of ETH is up to $3,660 marking a 2.74% surge over the last 24 hours. 

This surge follows a steady rise on Monday with the coin even climbing to $3,700 briefly before rebounding to the current level. The price action of Ethereum, thus suggests that investors are now regaining confidence and could potentially back the rally to $4,000. 

Furthermore, ETH’s market activity has surged over the last 24 hours as shown by the rising trading volume. The coin’s trading volume now sits at $30.64 billion after rising by 41.56% over the last one day. 

Additional data also suggests that Smart Money has already set up the trap for bears as on-chain indicators paint a rosy picture for Ethereum. 

Ethereum Traders Are Leaning Bullish

Regardless of the recent price volatility, Ethereum traders have continued to show conviction for the continuation of the bullish rally. According to data by Coinglass, the Long/Short Accounts Ratio confirms this bullish conviction. At the moment, this ratio sits at 1.49, highlighting that the long accounts outweigh short accounts. 

In particular, long trader accounts account for 59.87% while short trader accounts are 40.13%. While the gap is not too big, it suggests that ETH traders are leaning towards an upside price movement. 

However, it is crucial to note that this metric is not the same as long/short position volume. Instead, this metric refers to the number of long accounts versus short accounts, often referred to as the number of participants on the long and short side. It represents the proportion of net long and net short accounts to total accounts with positions, and not just trade size. 

Bulls Outnumber Bears Over the Last 7 Days

Another on-chain metric that paints a rosy picture for ETH is the Bulls and Bears indicator. For this metric, Bulls are addresses that have bought more than 1% of the volume traded while Bears are addresses that have sold more than 1% of the volume traded in a specified period.

For the case of Ethereum, the number of bulls over the last 7 days sits at 95. On the other hand, the number of bears sits at 92 according to data by IntoTheBlock.

This data shows that bulls have outweighed bears by 3, a narrow edge, but still suggests that investors are leaning bullish. In short, investors now opt for accumulation rather than distribution. 

What’s Next For Ethereum?

Clearly, on-chain metrics are in favor of a bullish Ethereum price continuation, at least for the short-term. This could potentially push ETH towards $4,000, a psychological mark that investors are eyeing for. However, whether the coin rallies to this point will also be dependent on the sentiment across the general crypto market.

For instance, any negative sentiment stemming from macro factors could halt the rally. Nonetheless, Smart Money has now laid the ground for another leg upward for Ethereum. But in case of a retrace below $3,500, such a move could invalidate the bullish hypothesis.