Ethereum Aims for $3,000 with Bullish Momentum Crossing $2,500
Bitcoin experienced a 3.18% surge recently, showcasing a bullish engulfing candle and signaling a revival in the altcoin market. Ethereum, the largest altcoin, followed suit with a resurgence in buyer interest.
The resurgence in Ethereum’s price, aiming for the $3,000 milestone, is notable as it gains momentum against Bitcoin. Ethereum, the second-largest altcoin in the crypto space, has reclaimed a market cap of $300 billion and witnessed a 2.92% increase in the past 24 hours. Currently trading at $2,521, Ethereum saw a 4.61% uptick, leading to a bullish engulfing candle formation.
Analyzing the daily chart, Ethereum’s price is moving within a falling-channel pattern, with strong support at the $2,400 level remaining intact. The recent recovery has offset the 3.45% decline observed earlier and hints at a potential bullish reversal. Additionally, a double-bottom pattern forming at this support level, coupled with a bullish divergence in the RSI line, raises the likelihood of a reversal rally.
Looking at the 4-hour chart, a consolidation range is visible between the support at $2,393 and the resistance at $2,581. The breakout of this range, which originated from a key candle formed on August 27, is anticipated to be a crucial entry point. Despite facing resistance from the 50-EMA in the 4-hour chart, a breakout rally is anticipated within the consolidation range, with target levels set at $2,700 and $3,173 in the short term.
Despite a decrease in whale activity, Ethereum continues to exhibit strength. The ETH-BTC pair displays a triangle pattern in the 4-hour chart, supporting the potential breakout in Ethereum’s price trend and indicating a minor recovery in Ethereum’s strength, potentially signaling the onset of an altcoin season.
While the decline in whale activity poses a challenge, particularly with fewer Whale transactions recorded recently, the overall market sentiment remains positive as long as major addresses continue to hold their positions. The presence of significant resistance levels near $2,750 suggests a volatile trend for Ethereum above $2,500, although a broader market recovery could pave the way for an uptrend.
In conclusion, Ethereum’s price action reflects a promising recovery, presenting a double-bottom reversal opportunity in the daily chart. However, the presence of substantial resistance levels near $2,750 and the influence of the 50-day and 200-day EMAs as dynamic resistances indicate a potentially volatile path ahead for Ethereum.
