Ethereum Price Analysis: ETH Sees End-of-Correction With This Resistance Breakout
Highlights
- The Ethereum’s Fear and Greed Index at 63% highlights a positive response from market participants for future trends.
- The ETH price above 100-and-200-EMA highlights the prevailing recovery momentum in restoring
- The intraday trading volume in Ether is $11.8 Billion, indicating a 17% loss.
Ethereum Price Analysis: Ethereum, the second-largest cryptocurrency by market cap entered a fresh rally in mid-week and rebounded from $2860 monthly support. This renewed buying interest bolstered by the Bitcoin price jump to $67000 on Friday has surged the ETH price to an 8.7% gain. However, an analysis of the daily chart shows the rising Ether price is heading to a crucial resistance indicating an upcoming pivot momentum for this asset.
Also Read: Here’s Why Ethereum Charts Might Turn Bullish Now: ETH Targets $4k?
ETH Poised for Rebound as Falling Channel Pattern Nears Break
In the daily time frame chart, the Ethereum price shows the formation of a falling channel pattern. The two parallel trendlines acting as dynamic resistance and support have plunged the ETH value from $4084 to $2864 support indicating a nearly 30% loss.
While the BTC price rally bolsters a new recovery sentiment in altcoin, the ETH price could remain trapped in a correction until the chart setup is intact.
Having said that, the Ether coin is heading higher to challenge the upper boundary of the Channel pattern. After a 3% upswing, the coin buyers escape the range of this pattern, signaling the end-of-correction trend.
According to Ki Young Ju, CEO of CryptoQuant, Bitcoin (BTC) is currently in the middle of its bull cycle. Ju highlighted that Bitcoin’s market cap is growing faster than its realized cap, a trend that historically lasts around two years.
If this pattern continues, the current bull cycle might extend until April 2025. The accompanying chart from CryptoQuant illustrates the growth rate difference between Bitcoin’s market cap and realized cap, showing similar cycles approximately every two years.
This potential uptrend significantly influences the altcoin market bolstering top assets like Ethereum (ETH), Solana (SOL), Cardano (ADA), and XRP to lead to higher rallies.
The ETH price breakout from the channel pattern will accelerate the buying momentum and assist buyers in rechallenging the $4080 high.
Technical Indicator
- Exponential Moving Average: The dynamic resistance of the 50-day EMA prevents the ETH price from breaching the channel pattern.
- Average Directional Index: The ADX slope falling below 18% hints the prevailing bearish momentum is weakening.
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