Several technical indicators and fundamental aspects point to a potential bullish breakout for Ethereum price in the near term towards its all-time high.
Key Notes
- The US spot Ethereum ETFs registered a net cash inflow of over $17 million on Monday led by BlackRock’s IBIT.
- The October crypto bullish sentiment could further boost Ethereum’s rising trend.
After successfully rebounding from the support level of around $2,300 in the last three months, Ethereum
ETH
$2 598
24h volatility:
2.2%
Market cap:
$312.31 B
Vol. 24h:
$16.82 B
price rebounded over 6 percent on Monday to retest a crucial resistance level of around $2,630. The top-tier altcoin, which has found a niche in the web3 space, has been forming a potential market reversal since hitting a correction bottom in early August.
From a technical analysis point of view, Ether price, in the daily time frame against the US dollar, has been consolidating in a symmetrical triangular pattern. According to veteran trader Peter Brandt, Ether price against the US dollar has been forming a potential inverted head and shoulders (H&S) pattern, coupled with a bullish divergence on the daily Relative Strength Index (RSI).
As a result, Ether price could be preparing for a major bull run towards its all-time high (ATH) in the near term. Furthermore, the ETH/BTC pair, in the daily time frame, has formed a double bottom after being trapped in a falling trend in the past few years, coupled with a rising divergence on the RSI.
However, Ether price, against the US dollar, must consistently close above the crucial resistance/support level around $2,800 in the near term to rejuvenate the bullish stance. Otherwise, a potential correction below $2,400 could happen again before the final rebound towards the all-time high.
#Ethereum could be breaking out of this Symmetrical Triangle any moment! The target is $3,400 🎯 pic.twitter.com/bcYKqv8zrX
— The Moon (@TheMoonCarl) October 14, 2024
Ethereum Network Obtains Favor among Institutional Investors
After Bitcoin
BTC
$65 478
24h volatility:
0.9%
Market cap:
$1.29 T
Vol. 24h:
$40.50 B
, Ethereum remains the most favored crypto asset by institutional investors globally. As of this writing, the Ether network had a fully diluted valuation of about $314 billion and a daily average traded volume of around $18.6 billion.
The Ethereum network has gained notable popularity in the Web3 space and commanded over $44 billion in total value locked (TVL) and over $84 billion in stablecoins supply. According to BlackRock’s CEO Larry Fink, Ethereum as a blockchain network has the potential to grow dramatically in the near future fueled by rising liquidity and transparency.
On Monday, the US spot Ether ETFs registered a net cash inflow of around $17 million, led by BlackRock’s ETHA. However, the notable cash outflows from Grayscale’s ETHE have weighed heavily on the Ether’s bullish momentum in the recent past.
Meanwhile, the Ethereum network has faced intense competition from other layer one chains led by Solana and BNB Chain. According to Justin Bons, the founder and CIO of Cyber Capital, the Ethereum network is facing major headwinds as its revenue gradually declines due to the rise in its layer two networks.
Consequently, Bons believes that Ether is effectively bankrupt, not just intellectually and ethically but also economically.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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