ethereum Price Jump Highlights Strong Demand at $2400
The realm of cryptocurrency bears witness to ethereum's substantial reclaiming of the $300 billion market cap, marked by a 2.92% enhancement in the past 24 hours. Currently, trading at $2,521, ethereum showcased a 4.61% increment last night, culminating in a bullish engulfing candle. Such movements signify a robust demand at the $2400 mark.
Examining the daily chart reveals ethereum's trading activities within a falling-channel pattern, firmly supported by an unyielding supply zone at $2,400. This resurgence not only challenges the 3.45% decline observed on Sunday but also hints at an imminent bullish reversal. An emerging double-bottom pattern at this pivotal support level, coupled with a bullish divergence in the RSI line, augments the probability of a reversal rally. The 4-hour chart further delineates a consolidation range, potentially ushering in a crucial entry point for price action traders targeting short-term objectives at $2,700 and $3,173.
Despite Low Whale Activity, ETH Grows Stronger
The ETH-BTC pair showcases a triangle pattern in the 4-hour chart, suggesting an impending breakout in ethereum's price trend. This pattern, indicative of a minor strength recovery in ethereum, may very well herald the onset of an altcoin season. Nonetheless, a recent analysis from Santiment reveals a palpable decline in whale activity in 2024, contrasting sharply with the peak transactions recorded in mid-March. Despite this downward trend, the relative absence of whale selling activity, coupled with sustained holding by top addresses, hints at a potential upward trajectory for ethereum's valuation.
Will ethereum Reach $3,000?
The possibility of ethereum hitting the $3,000 mark depends largely on its ability to maintain the bullish recovery currently observed. While a double-bottom reversal in the daily chart strengthens this prospect, a formidable supply zone near the $2750 level may impede progress. Additionally, the declining 50-day and 200-day EMA will likely serve as dynamic resistances, introducing a heightened volatility above the $2500 mark. Nonetheless, a broader market recovery could set the stage for an ethereum uptrend, making the $3,000 target a plausible outcome.
Disclaimer: This analytical piece aims to furnish investors with data, devoid of any intent to serve as investment advice. Prior to making investment decisions in the cryptocurrency realm, thorough research is advisable.
In conclusion, ethereum's current market dynamics, characterized by a bullish engulfing pattern and strong demand at the $2400 level, paint a cautiously optimistic picture of its future trajectory. While challenges such as low whale activity and significant supply zones loom large, the underlying strength observed against bitcoin and potential for market recovery provide grounds for optimism. As always, investors are encouraged to approach with diligent research and a nuanced understanding of market trends.
