The overall market has experienced a significant price drop across all the major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) in recent days. Amid this market downturn, Ethereum (ETH) the world’s second-biggest cryptocurrency has formed a bullish price action pattern on the 4-hour time frame.
Could this be the beginning of a bullish reversal for Ethereum? Let’s dive deeper into the technical analysis to uncover the opportunities.
Ethereum’s Bullish Pattern: What Does It Mean?
In the past week, ETH has been trading within a tight range between $2,340 and $2,700. During this time, it has developed a bullish ascending triangle pattern at a key support level.
Experts believe this pattern could lead to a potential rise for ETH. However, it’s important to note that ETH is currently trading below the 200 Exponential Moving Average (EMA) on both the 4-hour and daily charts, which suggests a bearish trend.
Will Ethereum Break Out?
If ETH breaks out of the ascending triangle pattern on the 4-hour chart and closes above $2,751, it could potentially rise by 12% to reach around $3,100 in the coming days. This level is close to the 200 EMA, which is a strong resistance point for ETH.
Despite this, the current bearish market sentiment may make it tough for ETH to break through this resistance. Still, investors and institutions are continuing to buy ETH at lower levels even as the market remains bearish.
Good News: Most ETH Holders Are in Profit!
On-chain analytics firm IntoTheBlock recently shared on X (formerly Twitter) that about 66% of ETH holders are currently making a profit. This has attracted a lot of attention from the crypto community. The last time we saw such profitability was in October 2023 when ETH was trading near $1,800.
At the time of writing, ETH is trading around $2,630 and has been stable over the past 24 hours, briefly reaching $2,700. This stability, along with the bullish pattern, has resulted in a 95% increase in trading volume.
Also Read: Markets Could Remain Highly Volatile: Here are the Cryptos to Monitor This Week
As the crypto market continues to fluctuate, Ethereum’s journey is one to watch closely.
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