Ethereum’s Bullish Cues Could Help ETH Price Jump 93%

NOIDA (— The Ethereum token has several bullish cues coming from on-chain metrics and technical setups. In the wake of the latest cryptocurrency market adjustments, Ethereum has shown promising signs of resilience and potential for future growth.

Despite experiencing a significant drawdown of 44%—notably harsher than Bitcoin’s 21%—Ethereum’s rapid recovery highlights the token’s resilience against market movements.

On-Chain Metrics Turn Bullish For Ethereum

A critical analysis reveals that Ethereum’s price finds reliable support at the Short-Term Holder (STH) Cost Basis.

Ethereum bullish
Ethereum short-term holders realized price. Source: Glassnode

This level has consistently acted as a foundation during price dips, indicating a strong holding pattern among recent investors and suggesting a base level of market confidence.

Moreover, Long-Term Holders (LTH) of Ethereum demonstrate ongoing confidence in the asset’s value proposition. Despite underperformance in comparison to Bitcoin, investors do not seem to be rushing to divest, which can be interpreted as a positive outlook for Ethereum’s price trajectory.

Ethereum bullish
Ethereum bull market correction drawdowns.

Reduced volatility is another bullish indicator for Ethereum. Since the FTX lows, the cryptocurrency has experienced less severe corrections, enhancing its appeal to both retail and institutional investors by suggesting a more stable investment environment.

The potential approval of Ethereum ETFs also looms large. The promise to boost accessibility and demand is similar to what the markets observed following the introduction of Bitcoin ETFs.

Finally, while Ethereum currently shows a lag in speculative interest compared to Bitcoin, this could imply significant growth potential as it catches up to more mature market cycles.

ETH Price Forms Bullish Patterns

Ether price has formed two bullish patterns, which could attract more buyers to the market.

The first pattern, visible in the 3-day timeframe, is the ‘falling wedge.’

Ethereum bullish
Ether prices are moving inside a bullish wedge pattern. Source:

The familiar pattern typically signals that a reversal to the upside is likely. The price target for the pattern is equal to the widest distance between the trend lines at the start of the pattern added to the breakout point.

A breakout with substantial volume can signify strong market conviction, thereby increasing the likelihood of continuing the trend.

To estimate the price target of a falling wedge pattern, traders measure the widest part of the wedge at the beginning of the formation. They then project this distance upward from the point of the breakout to set a potential target.

Higher volume during the breakout suggests stronger market conviction, supporting the likelihood of a successful price reversal.

According to the rules of technical analysis, the ETH price could rally over 37% to reach the pattern’s theoretical price target near $4,123.

Another Cue for ETH

Another bullish cue for the Ethereum token comes from the ‘bull flag pattern.’

ETH price formed a bull flag setup with a 93% upside target.

Assets with strong uptrends usually form the pattern. Bull flags consist of a flag pole that results from a near-vertical rise in the crypto token’s prices.

A period of consolidation succeeding the steep uptrend forms the flag of the pattern. Despite the strong vertical rally, the asset price does not drop as bulls maintain the buying pressure. As a result, the breakout from the flag pattern often results in a powerful uptrend.

Traders calculate the price target of the breakout by adding the length of the flag pole to the breakout price level. Per the rules of technical analysis, ETH price might rise 93% to reach the pattern’s projected price target of $5772 after confirming the pattern.

The post Ethereum’s Bullish Cues Could Help ETH Price Jump 93% appeared first on CoinChapter.