As a seasoned analyst with over two decades of experience navigating various financial markets, I’ve seen my fair share of price movements and trends. The recent surge in Ethereum’s price is an intriguing development that warrants closer scrutiny.
The Ethereum price surged over 2% during a low volatility Sunday to currently trade at $2,700. This uptick in the market is a pivotal moment for ETH price as buyers breach the resistance trendline of an 11-week accumulation trend. With the larger holders strengthening their grip over Ether supply, the current recovery trend could gain momentum for a $3,000 breakout.
Ethereum Price Breakout from 11-Week Accumulation Hints at $3,000 Rally
Over the past few weeks, I’ve observed that my Ethereum price predictions have been moving sideways, lagging behind the overall market. Currently, the price is holding steady above $2,200. This period of stability seems to be characterized by two trendlines converging, suggesting the formation of a symmetrical triangle pattern on my charts.
In theory, this pattern temporarily strengthens and lets market players regroup, aiming to follow the existing trend again. But occasionally, like with Ethereum, the price may surge past the resistance trendline in a strong uptrend.
During ‘Uptober’, the crypto market saw a resurgence in optimism, which propelled Ether’s price from $2,328 to $2,700, representing a 16.7% increase. This upward trend, pushing against the upper limit suggested by the Bollinger Bands, suggests that buyers are currently in control of the market.
If purchases continue at their current pace, the price increase after breaking out might result in a 26.5% climb towards the goal of $3,375.
According to data from Santiment, the proportion of Ethereum held by major investors and whales has been growing consistently since October 2019, currently standing at approximately 44.6%. This trend suggests that these big players are increasingly accumulating Ethereum, which might signal a high level of faith in the asset’s long-term prospects.
This trend could reduce the market selling pressure and bolster a sustained recovery rally.
ETH May Plunge as MVRV Spike Signals Profit-Taking
In the midst of the market’s upswing, I’ve noticed a surge of 6.5% in the 30-day Market Cap to Realized Cap ratio (MVRV), indicating that short-term investors are currently profiting. Although this trend might hint at a positive market forecast, it frequently aligns with temporary market peaks. This is because speculative traders often prefer to cash out their gains at such times.
Therefore, it’s possible that the cost of Ethereum might have difficulty initiating a quick rise and could exhibit temporary declines before reaching $3000.
Adopting a negative perspective, if the ETH price drops beneath the triangle pattern, it could intensify the selling activity and lead to a prolonged period of sideways movement (consolidation).
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2024-10-20 20:02