Coinspeaker Ethereum (ETH) Price Skyrockets Overnight: Is $4,000 Target in Sight?
Ethereum price ETH $3 397 24h volatility: 1.9% Market cap: $409.13 B Vol. 24h: $30.65 B shot up 4.26% last night to create a bullish engulfing candle and complete a morning star pattern. Currently, the ETH token is trading at a price of $3,398, challenging the 50-day EMA line as it bounces off from the 100-day EMA.
As it prepares for a reversal run, the hourly chart reflects an impending breakout ready to signal an entry point for price action traders.
Ethereum Price Analysis
In the 1-hour price chart, the Ethereum price action showcases a resistance trendline formed over the recent correction. This completes a triangle pattern with last night’s recovery run, and it prepares for and teases a triangle breakout rally.
Furthermore, the ETH price action also forms an Adam and Eve pattern as it forms a V-shaped recovery and a rounding bottom reversal. The neckline of the Adam and Eve pattern coincides with the 38.20% Fibonacci level at $3,477.
Hence, the bullish breakout of the triangle pattern will conclude the short-term pullback phase and increase the chances of a bullish pattern breakout. As per the Fibonacci levels, this breakout rally could reach the $4,000 psychological mark before the end of 2024.
Institutions Support Ethereum Reversal Chances
Despite the US spot Bitcoin ETFs registering a negative inflow of $226 million, the institutional demand for Ethereum has resurged. With a daily net inflow of $130.76 million on December 23, the total net assets have crossed the $12 billion mark.
It dominates 2.94% of the Ethereum market cap and reaches a cumulative total net flow of $2.46 billion.
Leading the bullish pack, BlackRock purchased $89.51 million worth of ETH, followed by Fidelity, capturing $46.37 million. Bitwise captured a cumulative $963.72k worth of ETH, and Grayscale remained the only outflowing ETF worth $6.09 million.
On-chain Insights Signal Buy ETH
As institutional demand for Ethereum grows with changing technical insights, Ethereum’s network growth also signals a bullish path ahead. In a recent tweet by Cryptoquant, multiple key metrics of Ethereum are showcased, giving bullish signals.
“These factors point to a possessive bullish outlook for Ethereum as market participants appear ready to maintain and potentially increase their exposure to the asset,” said Egyhashx, a technical on-chain analyst on Cryptoquant.
The highlighted metrics include Ethereum’s estimated leverage ratio, which has increased significantly over the past few months, rising from 0.35 in August to nearly 0.5 in December. This highlights the increase in leverage trading in the derivatives market across all Ethereum exchanges.
Furthermore, the fund holding on Ethereum of all symbols has reached 3.6 million compared to less than 3 million in late October. The funding rates remain positive overall, with the Korean premium index skyrocketing in December.
The premium increased from -2 to 5.1 at its peak in late December. This marks the highest Korean premium index for Ethereum since September.
Hence, the rising demand for Ethereum in institutions and the growing interest in the Korean markets are expected to boost the price of the biggest altcoins.
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Ethereum (ETH) Price Skyrockets Overnight: Is $4,000 Target in Sight?
