Ethereum (ETH) is currently trading between $2,980 and $3,041, with Bitcoin’s upward movement responsible for a recent 24-hour surge.
The price is swinging in a symmetrical triangle pattern, and a break above $3,100 could reinforce the bullish trend.
Fundamentals such as the Dencun upgrade and Ethereum ETF approval suggest a favorable environment for a potential bull run.
Ethereum (ETH) has been on a rollercoaster ride since the last bull run in March 2024, with the price down nearly 30% and struggling to sustain above the crucial $3,000 mark since May 2024. However, the bulls have shown some mercy, and ETH has managed to reclaim this region, currently oscillating between $2,980 and $3,041.
Analysts attribute the recent 24-hour surge of 3.17% to Bitcoin’s (BTC) upward movement and view it as a potential catalyst for an Ethereum bull rally.
From a short-term perspective, the price fluctuates within the boundaries of a symmetrical triangle pattern. We deem a decisive break above $3,100 essential to reinforce the trend and pave the way for higher price levels.
The 50-day Exponential Moving Average (EMA) acts as a price resistance level, and a breach above this indicator would signify strong buying pressure. Meanwhile, the pattern’s neckline provides three reversal supports at $2,880 and $2,818, where a retest is likely to occur.
Ethereum’s Price Action on the Brink of a Bullish Breakout
The release of the US Consumer Price Index (CPI) inflation rate yesterday has driven investors towards the stock and cryptocurrency markets, propelling Bitcoin to hit $66,000 and triggering a ripple effect on other coins.
We expect two primary fundamentals to influence Ethereum’s price action: the eco-friendly impact of the Dencun upgrade and the highly anticipated Ethereum ETF approval. Positive news regarding either of these factors could ignite a significant upward rally for the second-largest cryptocurrency.
Another crucial indicator to monitor is the Market Value to Realized Value (MVRV) ratio, which helps determine whether an asset is overvalued or undervalued. A high ratio suggests an overvalued state, while a lower ratio indicates a potential buying opportunity. Ethereum’s MVRV ratio has been on a downward trend since March, signaling an increasingly attractive buying prospect.