Ethereum Shows Bullish Pattern, Anticipates 12% Price Surge
The recent market turbulence has seen a notable decline in prices across major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Despite this downturn, Ethereum (ETH), the second-largest cryptocurrency globally, has displayed a positive price action pattern on the 4-hour time frame.
Over the past week, ETH has maintained a narrow trading range between $2,340 and $2,700. During this period, Ethereum has established a bullish ascending triangle pattern at a critical support level.
According to experts, this formation of a bullish price action pattern suggests a favorable outlook for ETH. However, Ethereum is currently trading below the 200 Exponential Moving Average (EMA) on both the 4-hour and daily time frames, indicating a bearish trend.
If Ethereum manages to break out of the bullish ascending triangle pattern within a 4-hour time frame and closes a candle above the $2,751 level, there is a strong possibility of a 12% surge towards the $3,100 level in the near future. This level aligns closely with the 200 EMA, which serves as a robust resistance level for Ethereum.
Nevertheless, prevailing bearish market sentiment may pose challenges for ETH in surpassing this resistance level of the ascending triangle pattern. Despite this sentiment, investors and institutions are seizing the opportunity to accumulate tokens at lower price levels amid the ongoing consolidation.
In addition to technical analysis, IntoTheBlock, an on-chain analytics firm, recently highlighted that approximately 66% of Ethereum holders are currently in a profitable position. This revelation has garnered significant attention within the crypto community. The last time such profitability levels were observed dates back to October 2023 when ETH was trading around $1,800.
At the time of reporting, ETH is trading near the $2,630 mark and has demonstrated stability over the past 24 hours, briefly touching the $2,700 level. This stability, coupled with the bullish price action pattern, has led to a substantial 95% surge in trading volume.
The evolving market dynamics and the resilience of Ethereum amidst the broader cryptocurrency landscape underscore the continued interest and confidence in the digital asset space.
