MEXCEthereum Price Exit From 11-Week Accumulation Signals $3000 Breakout
Highlights
- The Ethereum price breakout from the triangle pattern signals the end of 11 weeks of consolidation.
- The increase in positions held by top ETH holders signals a strong long-term outlook for the asset.
- The anticipated rally to $3,000 could encounter strong resistance at the $2,840 level, potentially triggering a short pullback.
The Ethereum price surged over 2% during a low volatility Sunday to currently trade at $2,700. This uptick in the market is a pivotal moment for ETH price as buyers breach the resistance trendline of an 11-week accumulation trend. With the larger holders strengthening their grip over Ether supply, the current recovery trend could gain momentum for a $3,000 breakout.
Ethereum Price Breakout from 11-Week Accumulation Hints at $3,000 Rally
Since early August, the Ethereum price prediction has showcased a sideways trend underperforming to the broader market. Stabilizing above $2,200, this consolidation has strictly resonated within two converging trendlines, indicating the formation of a symmetrical triangle pattern.
Theoretically, this pattern drives a temporary consolidation and allows market participants to recuperate the prevailing trend. However, in rare cases, as seen with ETH, the price breaks out bullishly from the overhead trendline.
As ‘Uptober’ sentiment returned to the crypto market, the Ether price rallied from $2,328 to $2,700, registering a 16.7% growth. The recovery trend challenging the upper boundary of the Bollinger Bands indicator hints that buyers are dominating the market.
With sustained buying, the post-breakout rally could lead to a 26.5% surge to the target $3,375 level.
Santiment data shows that the ETH supply held by top addresses has steadily increased since October 2019, reaching 44.6%. This suggests that large investors and whales accumulate more Ethereum, indicating strong confidence in the asset’s long-term potential.
This trend could reduce the market selling pressure and bolster a sustained recovery rally.
ETH May Plunge as MVRV Spike Signals Profit-Taking
Amid the market recovery, the 30-day Market Cap to Realized Cap ratio (MVRV) has spiked by 6.5%, suggesting that short-term buyers are profitable. While this scenario may suggest a bullish outlook, it often coincides with local market tops, as speculative traders typically choose to book profits.
Thus, the Ethereum price may struggle to drive an immediate rally and show occasional pullback before surpassing $3000.
From a pessimistic approach, the ETH price falling below the triangle pattern will accelerate the selling pressure and drive an extended consolidation.
Frequently Asked Questions (FAQs)
1. What does the Ethereum price breakout from the 11-week accumulation signal?
2. What is the significance of top ETH holders increasing their positions?
3. What resistance level could ETH face before reaching $3,000?
- Breaking: XRP Treasury Evernorth Debuts on Nasdaq Under XRPN Ticker After $1B Token Purchase
- BlockDAG Listing Rumors on Coinbase and Kraken Fuel Hype; But Analysts Urge Caution
- Toobit Introduces Multi-Million Dollar Shield Fund to Protect Traders Against Platform Incidents
- $1.7 Trillion T. Rowe Price Files for First U.S. Spot Shiba Inu ETF, Boosting SHIB’s Adoption
- XRP News: Key Ripple Whale Indicator Turns Bullish After 4 Months, Price Rally Ahead?
- Bitcoin Price Forecast as Trump Cuts Tariffs After US-China Trade Deal
- Analyst Foresees a Parabolic Rally for Pepe Coin Price as Whale Accumulation Intensifies
- Fidelity Amends S-1 for Solana ETF: Is SOL Price Set to Rally?
- Pi Coin Price Targets $0.65 as ISO 20022 Membership Boosts Institutional Confidence
- Ethereum Price Flips BTC in Strategy Shift, Eyes $4500 Level
- Expert Predicts XRP Price to Hit $10 as Elliot Wave, XRPR ETF Inflows Align
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
