Ethereum followed Bitcoin's recovery on Thursday, marking a green start for another trading volume. Amid this, the digital asset's trading volume has increased significantly in the past day alone, a development that could lead the cryptocurrency towards the coveted $2,000 level.
Ethereum daily trading volume increases by 35%
According to coin data tracking website Coinmarketcap, Ethereum daily trading volume has seen one of the fastest increases in the past day. As of this writing, Ethereum's daily trading volume has soared to over $7 billion. This increase is a solid 35% higher than the daily trading volume recorded the previous day.
The ETH/USDT trading pair accounted for the majority of this volume, with this trading pair on the Binance exchange alone exceeding $610 million. However, the ETH/USD pair on Coinbase, the largest cryptocurrency exchange in the United States, also surged to $156 million.
This surge in trading volume saw support for the digital asset's price recovery above $1,940, albeit fragile. Nonetheless, it shows that the bulls are currently waking up once again and their renewed interest, as seen by the jump in trading volume, could be a catalyst to push the price of the coin towards $2,000.
ETH price continues to hold $1,900 support | Source: ETHUSD on Tradingview.com
But can ETH hit $2,000?
One thing that continues to support Ethereum's price is that investors are ready to buy the digital asset at higher prices than just a few weeks ago. Proof of this is that the cryptocurrency is still trading well above its 100 and 200 day moving averages.
Both of these averages paint a bullish picture because despite being cheaper not too long ago, investors are still optimistic. And the expectation that Ethereum's price could reach $2,000 continues to exert buying pressure even at current prices above $1,900.
As of now, the digital asset has already established support above $1,900, suggesting that the bulls have planted their feet at this level. What matters now is the resistance holding ETH at $1,960, a level that was rejected in the early hours of Thursday.
If ETH is able to comfortably clear the $1,960 resistance, then $2,000 becomes that next target. Given the significant increase in trading volume, ETH could test this level before the weekend. A successful climb above $2,000 then paves the way towards $2,500.
Currently, the price of ETH is hovering around $1,900, which represents a gain of 1% in the last 24 hours.