|
Getting your Trinity Audio player ready...
|
Ethereum (ETH) is showing promising signs of a potential bull run, with technical analysis suggesting a price surge towards the $2900 mark. Traders are gearing up for a potential market upswing in late 2024 or early 2025.
On the 4-hour chart, ETH/USDT has painted a compelling picture. It’s currently trading within a rising channel and has formed a bear flag pattern, suggesting a potential breakout. The $2900 level, coinciding with the 200 EMA, is a crucial resistance zone. A decisive break above this level would confirm a bullish trend. However, prolonged resistance at $2900 could dampen bullish sentiment.
Zooming out to the weekly chart, ETH/USDT is tracing a two-year upward channel, repeatedly bouncing off the lower trendline. This pattern hints at a possible rally towards the $2900 resistance. While the current price is below the annual average, reinforcing the significance of $2900, a recent break above the 52-week exponential moving average with a long tail suggests strong underlying buying pressure.
Adding to the bullish narrative, the broader cryptocurrency market is echoing similar sentiments. Altcoins, which often mirror Bitcoin’s and Ethereum’s price movements, are currently trading at levels reminiscent of their 2020 and 2023 lows. This suggests a potential market bottom and could pave the way for a broader crypto market rally, including Ethereum.
Also Read: BlackRock’s iShares Ethereum Trust ETF (ETHA): What You Need to Know About This $750M+ Crypto Giant
Technical indicators also support a bullish outlook. The RSI for ETH/USDT has dipped into the oversold zone but bounced sharply, aligning with the ascending support trendline. This suggests a potential price rebound. Additionally, positive funding rates indicate bullish sentiment among traders, despite the historical tendency for negative funding rates to precede bearish trends.
While the technical analysis paints a promising picture, it’s essential to approach the market with caution. The cryptocurrency market is highly volatile, and past performance is not indicative of future results. Traders and investors should conduct their own research and consider consulting with financial advisors before making investment decisions.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Crypto and blockchain enthusiast.
