As a seasoned crypto investor with a keen interest in Ethereum, I’m encouraged by the recent surge in ETH price following Bitcoin’s price jump. However, I remain cautious as the daily chart indicates Ethereum is heading towards a crucial resistance level that could pave the way for an upcoming pivot momentum.
Ethereum Price Analysis: Ethereum, the second-largest cryptocurrency by market cap entered a fresh rally in mid-week and rebounded from $2860 monthly support. This renewed buying interest bolstered by the Bitcoin price jump to $67000 on Friday has surged the ETH price to an 8.7% gain. However, an analysis of the daily chart shows the rising Ether price is heading to a crucial resistance indicating an upcoming pivot momentum for this asset.
ETH Poised for Rebound as Falling Channel Pattern Nears Break
In the daily chart, Ethereum’s price displays a channel pattern with falling trends. Two trendlines, functioning as dynamic resistance and support, have caused Ethereum’s value to drop from $4084 to $2864, resulting in a nearly 30% decrease.
The surge in Bitcoin’s price is fueling renewed optimism for altcoins, but Ethereum might continue correcting until its chart indicates a solid reversal.
“To add to that, Ether’s price is projected to rise and test the upper limit of its Channel pattern. Following a 3% climb, market participants have left the confines of this Channel, indicating the conclusion of the corrective phase.”
As a researcher studying the cryptocurrency market, I’ve come across an interesting observation from Ki Young Ju, the CEO of CryptoQuant. According to his analysis, we are currently in the middle of Bitcoin’s (BTC) bull cycle. He supports this claim by pointing out that Bitcoin’s market capitalization is expanding at a faster rate than its realized cap. Historically, this trend has persisted for approximately two years.
As an analyst studying the cryptocurrency market, I’ve observed an intriguing pattern based on the data presented in this CryptoQuant chart. The gap between Bitcoin’s market capitalization and realized capitulation has been expanding at a significant rate, reminiscent of previous cycles occurring roughly every two years. If this trend persists, it suggests that the current bull market could potentially last until April 2025.
The upward trend of this potential asset could notably boost the altcoin market, causing top coins such as Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP to surge.
As a researcher studying cryptocurrency markets, I believe that the breakout of Ethereum (ETH) from its current channel pattern has the potential to significantly boost purchasing momentum. This event could enable buyers to regain confidence and attempt to surpass the previous high of $4080.
Technical Indicator
- Exponential Moving Average: The dynamic resistance of the 50-day EMA prevents the ETH price from breaching the channel pattern.
Average Directional Index: The ADX slope falling below 18% hints the prevailing bearish momentum is weakening.
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2024-05-18 17:25