ANALYST POINTS ETHEREUM GROWTH SIGNAL
A three-line breakout chart with daily noise and irregular price movements filtered out shows that the cryptocurrency has completed an eight-month correction period.
The pattern signals the start of a broad uptrend in ETH from the October 2023 lows near $1,500.
Such breakouts often cause a cascading price increase, attracting new buyers and forcing sellers out of the market, Godbole explained.
A similar pattern in Bitcoin in mid-October led to the rate returning to around $73,000. Since then, the digital gold quotes have added about 45%, rising to ~$96,000.
The technical bullish signal in Ethereum is supported by fundamental factors.
In November, the number of BLOBs placed on the network by L2 protocols increased sharply. The increased activity increases the volume of fees, the partial burning of which takes the coins out of circulation.
It is also worth paying attention to the institutional interest in the second-largest cryptocurrency by market capitalization. On November 29, nine spot ETH ETFs in the US recorded a net inflow of $332.9 million, a record figure since the products were launched in July.
