Ethereum Price Forecast: ETH Poised for Bullish Surge Towards $4K
Ethereum has shown a pattern of consolidation above both the 100-day and 200-day moving averages, indicating a positive trend. The recent introduction of spot ETH ETFs is expected to drive upward momentum towards the upper boundary of a wedge formation in the medium term.
Analyzing Ethereum’s daily chart reveals that after surpassing the crucial 100-day moving average at $3,354, the price entered a sideways phase, lacking a clear direction. This phase validates the breakout and implies a balance between buyers and sellers. However, with the launch of spot ETH ETFs and a substantial net inflow of $106.6 million on the first day, an uptick in demand for Ethereum is anticipated, setting the stage for a continuation of the bullish trend. In this context, the primary target for buyers is the upper boundary of the wedge at $3.7K. The price is currently contained within a critical range, defined by the upper boundary of the wedge ($3.7K) and significant support at $3.4K, suggesting a higher likelihood of a bullish breakout.
On the 4-hour chart, Ethereum buyers have encountered resistance in surpassing the previous major swing high of $3.5K due to existing selling pressure, leading to a period of sideways consolidation. Within this consolidation phase, an ascending wedge pattern has emerged. While this pattern typically indicates a bearish reversal, the prevailing bullish sentiment in the market is expected to drive renewed demand, potentially resulting in a breakout above the wedge. In the event of an unforeseen bearish breakout, a short-term retracement phase may ensue before the next bullish move, presenting an opportunity for participants to accumulate ETH at lower prices.
With Ethereum’s price rebounding from below the $3K mark and the official debut of ETH Spot ETFs, analyzing investor behavior through on-chain metrics can offer insights into the recent recovery and future trends. The Ethereum Exchange Reserve metric, which tracks the amount of ETH held in exchange wallets, has shown a notable decline in recent weeks. This decrease suggests that significant investors have capitalized on the market correction to buy the dip, subsequently withdrawing their coins from exchanges for long-term holding. The diminishing supply, coupled with growing buying interest following the launch of Spot ETFs, indicates a potential sustained rally in the upcoming months.
In conclusion, Ethereum’s price action and on-chain metrics point towards a positive outlook, with potential bullish movements in the near term. The market dynamics and investor behavior signal a favorable environment for Ethereum’s price trajectory, underpinned by the introduction of spot ETH ETFs and shifting on-chain trends.
