- Ethereum is showing strong bullish signals, with a recent surge bringing its price close to $2,500 and potentially targeting $3,000 as market conditions improve.
- Despite a decline in whale activity, Ethereum’s recovery and consolidation suggest that the uptrend could continue, pending resistance challenges.
As Bitcoin made headlines with a 3.18% jump last night, forming a bullish engulfing candle, the broader altcoin market is experiencing a revival. Ethereum, the leading altcoin, is mirroring this bullish trend, leading to a renewed optimism among investors. Could this recovery propel Ethereum to the coveted $3,000 mark? Let’s delve into the details.
Ethereum’s Price Surge: Demand at $2,400
Ethereum, the second-largest cryptocurrency by market cap, has recently reclaimed a $300 billion valuation and witnessed a 2.92% increase in the past 24 hours. The ETH token, now trading at $2,521, surged 4.61% overnight, forming a bullish engulfing candle that hints at strong upward momentum.
Despite trading within a falling-channel pattern on the daily chart, the crucial support at $2,400 remains intact. This support level has not been breached, and the current recovery is a promising sign following a 3.45% drop on Sunday. A potential double-bottom pattern forming at this support zone, coupled with a bullish divergence in the RSI line, suggests that a reversal rally might be on the horizon.
Consolidation and Breakout Potential
On the 4-hour chart, Ethereum is consolidating within a range from $2,393 to $2,581. This range, established from a significant candle on August 27, indicates a potential breakout scenario. The 50-EMA on this chart is acting as a dynamic resistance, causing a 0.85% drop and keeping the bullish growth in check.
However, the bullish divergence within this consolidation range is evident, signaling the possibility of a breakout. Traders should keep an eye on this range, as a breakout could lead to target levels of $2,700 and $3,173 in the near term.
Low Whale Activity Yet Growing Strength
The ETH-BTC pair displays a triangle pattern on the 4-hour chart, reinforcing the likelihood of a breakout in Ethereum’s price trend. Despite a noticeable decline in whale activity this year—from 115.1k transactions in mid-March to just 31.8k in late August—Ethereum’s price shows resilience.
While whale transactions have decreased, the overall lack of whale selling is a positive sign. As long as significant addresses continue to hold their positions, Ethereum’s price is likely to trend higher.
Can Ethereum Reach $3,000?
The bullish recovery in Ethereum suggests a potential double-bottom reversal in the daily chart. However, the substantial supply zone near the $2,750 level could pose a challenge to the recovery momentum. Additionally, the declining 50-day and 200-day EMAs may act as dynamic resistances.
Ethereum’s price is set for a volatile journey above $2,500. A broader market recovery could support an uptrend, making the $3,000 target attainable in the near future.
