ETH/BTC is trading in a bullish pattern on a monthly timeframe, which could influence a positive price movement.
As more traders hold a bullish view, buying activity is strengthening.
Ethereum [ETH] has performed mediocre recently. According to Trading View data, after reaching a peak of $4,100 on December 2, ETH quickly fell by 20.13%, dropping to $3,200. This sharp decline indicates persistent selling pressure in the market.
Despite the selling activity, a new bullish pattern has emerged—a high-probability setup, suggesting that as buyers step in to push prices higher, sellers may soon lose their dominance.
A high-probability event is emerging: Is ETH about to rebound?
ETH/BTC is showing signs of a potential rebound and has formed a high-probability setup. A symmetrical triangle pattern has emerged, with prices fluctuating between converging support and resistance levels.
The appearance of this pattern within the monthly timeframe enhances the likelihood of an upward breakout.
Currently, prices are trading near the bottom of the pattern, at a support level, indicating a strong potential for upward movement.
If this pattern materializes, ETH could rebound, with three key levels to watch: 0.0540, 0.0859, and 0.1202. This means purchasing 1 ETH with BTC could become increasingly expensive.
As ETH/BTC rises towards these levels, it will also positively impact the ETH/USDT price, which is currently trading at $3,200. If the rebound materializes, ETH has the potential to reclaim previous highs around $4,000 and rise further.
Sellers are losing momentum.
Sellers in the market seem to be losing dominant momentum. The Relative Strength Index (RSI), which has been trending downward for months, is currently approaching the oversold region, with a current reading of 32.19.
When the asset approaches the oversold region (marked at 30), it indicates that selling pressure is weakening, suggesting that buying activity may re-emerge. If this trend continues, ETH's price may rise and become more expensive with increasing demand.
The Chaikin Money Flow (CMF) indicator further confirms the weakening of selling pressure, as the indicator begins to rise and trends towards the positive territory.
CMF measures the balance of buying and selling pressure in the market. An upward shift indicates that buyers are regaining control, with their trading volume surpassing that of sellers.
This upward trend could enhance ETH's price, signaling a potential market reversal and an increase in asset value.
The ETH hoarding craze.
CryptoQuant's data shows that the continuous accumulation of Ethereum (ETH) is exhibiting a surge trend, indicating that more addresses are holding the asset with a long-term perspective.
Currently, the number of addresses holding ETH has increased by 60%. These addresses now account for 16% of the total supply (approximately 19.4 million ETH), up from 10% in August, marking a significant shift in investor behavior.
This accumulation trend is often seen as a bullish indicator. It suggests that investor confidence is continuously increasing, and there is significant potential for price appreciation.
If this trend continues, ETH may experience a significant rise in the near future.