Ethereum Price: The second-largest cryptocurrency, ETH, experienced significant volatility this week as Bitcoin price stabilized below $38,000. This sideways movement led to a decline in the overall bullish momentum of the crypto market and hindered the progress of most major cryptocurrencies.
Nevertheless, as Bitcoin price stabilizes above $30,600, there is renewed buying interest in ETH. This surge pushed the price of ETH above the psychological barrier of $3,000. Is this breakout a signal to enter the market?
Also read: Ethereum (ETH) Parabolic Run Occurs in Grayscale After Dencun Upgrade
Is ETH price ready to rise by $3500?
Ethereum (ETH) coin started its current recovery trend line in late January when the price showed sustainability above $2,166. The stock has gained 41% over the past five weeks and is currently trading at $3,062.
A recovery was avoided as Bitcoin prices rose due to large inflows into spot BTC ETGs. The bull market has gained further momentum as the Ethereum network continues to move steadily towards the long-awaited Dencun upgrade, which is scheduled to be implemented in slot 8626176 around mid-March.
This week, Ethereum price has remained mostly flat between two horizontal levels: $3,030 and $2,875. Following an aggressive rally, ETH price must have regained strength with the recent price drop.
With an intraday rally of 3%, the altcoin decisively broke through the range resistance and regained the psychological level of $3,000. If the coin’s price shows sustainability above the rebirth level, the buyer could aim for a potential target of his $3180 and then his $3280.
Also read: ETH/BTC chart analysis: Does Ethereum’s rally against Bitcoin herald altcoin season?
Channel pattern puts Ethereum price at risk of new correction
While the current market outlook for Ethereum appears to be bullish, a look at the daily chart shows that the ongoing rally is strictly following the structure of an expanding channel pattern. As the coin price approaches the upper trendline of the pattern at $3180, ETH price could face heavy supply to trigger a new correction.
technical indicators
- Exponential moving average (EMA): A bullish crossover condition between the daily EMAs (20, 50, 100, 200) indicates that a strong uptrend is underway.
- Average direction index: The high ADX slope of 41% indicates that buyers are quickly exhausted and need to pull back a bit to regain strength.
Related article
