Ethereum’s price has shown small signs of improvement after a period of decline, but the question remains: will this uptick lead to a major rally? At the time of writing, Ethereum is trading at $2,712, up by 1.2%. However, for Ethereum to enter a more sustained bullish phase, it will need to recover from its recent 15.81% drop. Despite these challenges, there are several indicators suggesting that Ethereum could be gearing up for a rally in the near future.

One of the key developments supporting a potential bullish trend is the surge in buying volume, particularly from U.S. investors. The number of active Ethereum addresses spiked to 376,653 over the last 24 hours. This marked a reversal from the downward trend that began on February 10, when the number of active addresses was closer to 431,000. Active addresses, which represent the unique wallets involved in sending or receiving Ethereum, have now increased, indicating more engagement on the network.

Additionally, the volume of Ethereum transfers saw a significant jump, rising by 120.53% compared to the previous low. Approximately 1.73 million ETH was transferred in the last 24 hours, up from 1.68 million the day before. According to analysis from AMBCrypto, much of this buying activity is coming from U.S. investors. This is reflected in the upward movement of the Coinbase Premium Index, which tracks the activity of retail investors on the platform compared to the broader market. The rise in buying volume is a positive indicator for Ethereum, suggesting that U.S. investors are driving much of the demand at the moment.

In the derivatives market, there’s also evidence of bullish sentiment. The Taker Buy-Sell Ratio, which measures the strength of buyers versus sellers, stands at 1.07. This ratio is above 1, which typically signals that buying pressure is outpacing selling activity. This suggests that investors are favoring buying Ethereum over selling it, which is a key signal that the market could move upward in the near future.

Despite these positive indicators, there are still some warning signs. The Fund Market Premium, a metric that tracks the difference between the market price and the net asset value (NAV), currently stands at -0.9. This indicates an increase in selling pressure, suggesting that there are still active sellers in the market. If this trend continues, it could prevent Ethereum from breaking through crucial resistance levels and curbing its potential rally.

Should the market sentiment shift in favor of buyers, and if the selling pressure decreases, Ethereum could find itself on a clear path to higher prices. If Ethereum successfully overcomes these hurdles and sustains the recent momentum, it could see further price appreciation in the coming days.

In conclusion, while Ethereum’s recovery is still in the early stages, the surge in buying volume, particularly from U.S. investors, is a promising sign. The uptick in active addresses and the Taker Buy-Sell Ratio further strengthens the bullish outlook for Ethereum. However, the ongoing selling pressure indicated by the Fund Market Premium remains a concern, and if it continues, it could dampen Ethereum’s progress. For now, the market appears to be leaning toward a potential rally, but only time will tell if the current momentum can be sustained and lead to a larger price movement.