Ethereum analysis
NAIROBI (CoinChapter.com) — Ethereum (ETH) has broken through a critical resistance level that once sent its price tumbling by over 79% during its 2022 bear market. Analysts suggest this breakout marks the end of a three-year consolidation period, potentially setting the stage for a bullish price action.
A Three-Year Pattern Breaks as ETH Reclaims Momentum
Ether’s price recently surged past the $3,800 resistance, confirming the completion of a long-term symmetrical triangle on the weekly chart. Analyst Quinten Francois described the move as the “waking up” of a sleeping giant. Ethereum, now trading at $3,669, has rallied by 47% since the start of November.
ETH breaks 3-year consolidation, momentum surges. Credit: X
Crypto analyst Venturefounder also noted that Ethereum appears to be finalizing a “cup and handle” formation. If the $3,800 resistance holds as support, analysts predict ETH could climb toward $5,349 and $7,238 by the end of Q1 2025. This would represent a 97% increase from current price levels.
Institutional Inflows and Whale Accumulation Support ETH Rally
Ethereum’s bullish breakout is underpinned by growing institutional demand and whale activity. On Nov. 29, Ethereum-focused exchange-traded funds (ETFs) in the U.S. recorded $332.9 million in daily inflows, a new high. BlackRock’s iShares Ethereum Trust and Fidelity’s Ethereum Fund contributed $250 million and $79 million, respectively. These inflows signal increased confidence among institutional investors.
ETH ETFs See $332M Daily Inflow Surge. Source: SoSoValue
At the same time, large Ethereum holders have ramped up their accumulation. Data shows whales holding between 100,000 and 1,000,000 ETH acquired 280,000 ETH—valued at nearly $1 billion—in just four days.
The accumulation coincides with Ethereum’s futures open interest on the Chicago Mercantile Exchange (CME), which hit an all-time high of $2.8 billion. The rising futures premium at 14% reflects growing market optimism.
Macro Trends Add Fuel to Ethereum’s Momentum
Despite Ethereum’s rally, the U.S. Dollar Index (DXY) remains a crucial factor in its performance. Venturefounder noted that ETH’s price has yet to “explode” due to the DXY maintaining strength. Historically, crypto markets thrive when the dollar weakens. A potential DXY breakdown could act as a catalyst for Ethereum’s next leg higher.
ETH Primed for Breakout as DXY Weakens. Source: Venturefounder/X
Meanwhile, pseudo-crypto analyst Titan of Crypto pointed to historical patterns, suggesting Ethereum’s cycle peak could range between $7,800 and $9,900, based on the 141.40% Fibonacci extension. Ethereum could approach the $10,000 mark if history repeats during this cycle.
ETH/USD monthly price chart. Source: TradingView/Titan of Crypto
Separately, Doctor Profit described ETH as undervalued below $4,000, suggesting the current price offers an entry point for mid-term investors.
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