Ethereum’s Price Recovery Hinges on $2900 for Upcoming Bullish Momentum

Ethereum’s potential rally hinges on $2900, but market signals paint a different picture. The crypto has formed an upward channel, breaching the 52-week moving average. Despite this, the Relative Strength Index (RSI) for ETH/USD is oversold, while funding rates are showing positivity.

Traders are eyeing a potential bull market for Ethereum in late 2024 or early 2025. On the 4-hour chart, ETH/USDT is exhibiting a bear flag pattern within a rising channel, targeting the $2900 level. The price is expected to hit this zone, aligning with the 200 EMA cloud on the chart.

For a bullish trend to strengthen, Ethereum must break and sustain levels above the 200 EMA. Although the overall outlook is optimistic, caution is advised if the price lingers below $2900 for an extended period.

On the weekly chart, Ethereum’s price trajectory follows a two-year upward trend channel, repeatedly touching the lower trendline, hinting at a potential surge to $2900. The current price sits below the annual average, emphasizing $2900 as a critical resistance level.

Moreover, ETH/USDT recently breached the 52-week exponential moving average, leaving a long tail on the weekly candle, indicating robust buying pressure. This implies that despite the current lower price, significant interest exists for a move towards $2900.

Altcoins are also at levels reminiscent of 2020 and 2023 lows, signaling a potential bottom for Ethereum. With market participants cautious and altcoins trading at historical lows, experienced traders view this as a lucrative opportunity.

The RSI for ETH has dipped into oversold territory, bouncing back sharply from the 30% level, aligning with the ascending support trendline for ETH/USD. This bounce could propel Ethereum to new highs.

Furthermore, positive funding rates in 2024 suggest bullish sentiment for Ethereum, contrary to negative rates that typically indicate bearish sentiment. The data from Glassnode indicates a positive outlook for Ethereum in the current market conditions.