Ethereum, the second-largest cryptocurrency by market capitalization, has exhibited a notable bullish trend since the second week of January. This period coincided with the much-anticipated approval of the Spot Bitcoin ETF, a development that significantly contributed to Ethereum’s price surge from $2,170 to $2,714. In contrast, Bitcoin displayed continued volatility during this period. As previously reported by Coingape, there was a substantial increase in whale accumulation for Ethereum in December 2023. This trend suggests that ‘smart money’ investors showed a greater inclination towards Ethereum over Bitcoin, despite a historical milestone.
Will Bitcoin continue to rise as Ethereum ETF could be the next topic of investor’s focus?
Ethereum Price Project Strength for Prolong Recovery.
- The ETH price may prolong recovery until the expanding channel is intact.
- A falling coin price may find a surge in demand pressure $2430 and $2300 supports
- The intraday trading volume in Ether is $11.03 Billion, indicating a 10.3% gain.
The Ethereum coin has rallied in a bullish trajectory for the past four months, where the price jumped from $1522 to a recent high of $2714, registering 77% growth. A look at the daily time frame chart shows that this recovery can be followed using two divergence trendlines which show the formation of an expanding channel.
The coin price rebounded at least thrice from both trendlines indicating the market participants took a stick on this pattern structure. In theory, this chart setup reflects increasing volatility in an asset but provides a directional trend, once price breaks from either trendline.
Amid the current downturn in the market, the Ethereum price recently reverted from a $2714 high to a plunge of 7.25% to $2517. This bear within the chart range could tumble the ETH value another 8-9% to lower the trendline around $2300.
Some recent insights from on-chain analytics firm Santiment indicate. In just one week, the Ethereum price dominance over Bitcoin has spiked, reaching a remarkable increase of +22.4%. The network is experiencing rapid growth, averaging 89.4K new $ETH addresses daily, with an impressive surge to 96.3K new wallets yesterday. Ethereum’s presence in exchange supplies is dwindling, dropping from 8.15% to 8.10%, approaching its all-time low of 8.05%.
These developments project the ETH price is likely to rebound from a lower trendline which could surge its value past $2700 to chase the $3000 mark.
ETH/BTC Pair Rebounds From Crucial Support
Based on the latest insights from respected analyst Michaël van de Poppe, Ethereum is showing a remarkable rebound, potentially signaling an upcoming uptrend. To firmly establish this trend, Ethereum must surpass the 0.06 BTC level. The observation of a weekly bullish divergence is a strong indicator of Ethereum’s increasing momentum, suggesting we might see considerable strength in the market over the next few months.
- Exponential Moving Average (EMA): The ETH price above daily EMAs(100 and 200) accentuates the overall trend is bullish.
- Relative Strength Index (RSI): The daily RSI above 50% reflects the buyers having an upper hand on this asset.
