While Ethereum advances with its expansion plans, bullish sentiment begins to gain ground. ETH price broke its bearish trend with a significant rise of 5.3% in the last 24 hours. However, it is still very far from its historical record d€4,878.26 which he managed to achieve almost three years ago, on November 10, 2021.
This increase almost completely offsets the losses accumulated since last Tuesday, reducing the weekly decline to just 0.9%. Ethereum appears to have arrived later than other prominent altcoins that have already taken advantage of the “uptober” sentiment.
Indeed, the altcoin attracts significant attention as trading volume increases by 68%, reaching US$21.4 billion in the last 24 hours.
Ethereum holders are betting for the long term
According to data from CryptoQuant, ETH reserves on exchanges fall drastically, with more than $4 billion withdrawn, of which $750 million corresponds to the last week alone.
This represents a pullback from the two-month peak in Ethereum profit-taking, as several holders decided to capitalize on previous gains.
The main driver of this sentiment appears to be Ethereum’s renewed focus on improving its scalability. The co-founder of EthereumVitalik Buterinrecently announced “ The Purge”, a planned update to optimize data storage and reduce protocol complexity. Additionally, another update called “The Verge” will allow Ethereum works on everyday devicessuch as smartphones and smart watches, considerably decreasing the hardware requirements to participate in the network.
These developments have fostered a more positive long-term outlook for Ethereum, cementing its position as the largest altcoin after months of stagnation.
ETH Price Analysis: Can the Rally Last?
While fundamentals favor Ethereum, technical indicators suggest a possible break of the multi-month bearish trend. Notably, the ascending triangle pattern that has consolidated the ETH price since August appears close to concluding.
This is even more likely given that the MACD line appears to be in a crossover above the signal line, a move that usually coincides with significant increases in the price of ETH.
However, significant challenges remain, especially the overhead resistance of the descending channel that has kept Ethereum in a downtrend since May.
While the 200-day SMA has provided strong support during the recent consolidation, the 50-day SMA remains a firm resistance level. Overcoming it will be crucial to consolidate a breakout of the triangle.
However, Ethereum might not yet be ready for a breakout, as the Relative Strength Index (RSI) has yet to reach bullish territory, currently sitting at 48. Without enough buying pressure, a breakout attempt might fail.
If the pattern materializes, a price target of $3,400 by the end of the year seems reasonable. However, with strong fundamentals building up, Ethereum could be on its way to a new high.
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Source: Ambito
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