- The past week has seen a significant selling pressure on Ethereum (ETH).
- Despite this, market indicators are showing bullish trends for the cryptocurrency.
- A noteworthy detail is Ethereum’s recent price movement, which suggests a potential breakout soon.
Ethereum shows promising signs for the end of the year as market indicators turn bullish and price momentum gains traction.
Ethereum to Potentially Breakout Soon
According to data from CoinMarketCap reviewed by COINOTAG, Ethereum has seen its price increase by over 2% in the past week. In just the last 24 hours, ETH has surged more than 3%, indicating a strong bullish trend.
Currently, Ethereum is trading at $3,488.88, boasting a market capitalization exceeding $419 billion. Recent price movements have resulted in only 10% of ETH investors being at a loss, as reported by IntoTheBlock. This optimistic scenario is further supported by a bullish pattern noted by the crypto analyst, World of Charts, who identified a falling wedge pattern. This pattern suggests that ETH has been consolidating since May and is now nearing a potential breakout.
Despite previous rejections from the upper limit of this pattern, World of Charts maintains that there is still a significant chance for a breakout. Should this occur, Ethereum could be poised to reach new highs by year’s end.
Short-Term Outlook for Ethereum
To understand the short-term prospects of Ethereum, COINOTAG examined several key metrics. Last week, Ethereum witnessed a rise in selling pressure, with both Exchange Inflow and Supply on Exchanges increasing. This indicates that more investors were selling their Ether.
Despite this selling pressure, market sentiment among top investors remains confident, as evidenced by an increase in the supply held by top addresses. Additionally, several market indicators point towards a bullish sentiment. For example, the MACD suggests a possible bullish crossover, and the Relative Strength Index (RSI) recorded an uptick, moving towards a neutral zone.
Furthermore, the Chaikin Money Flow (CMF) also displayed an upward trend, reinforcing the potential for a price increase. Should these indications prove accurate, ETH may reach $3,895 in the near future. Conversely, if the market turns bearish, a drop to $2,877 could be anticipated.
Conclusion
In summary, Ethereum is showing strong potential for both short-term and long-term gains. Despite recent selling pressures, bullish patterns and market indicators suggest an optimistic future. Investors should keep a close eye on ETH’s price movements and market trends as we approach the end of the year.
