As a seasoned researcher and crypto enthusiast with over a decade of experience in the digital asset market, I find the current state of Ethereum (ETH) particularly intriguing. The recent surge in ETH, following President-elect Donald Trump’s victory, has not only broken its resistance but also echoes a historical setup that was successful in 2023.
Ether (ETH) experienced its biggest three-day increase in 2024, jumping up by 21% following Donald Trump’s election as the U.S. President. This surge pushed the cryptocurrency above its previous resistance level of $2,800, breaking a 96-day period where it had been consolidating within a range.
In the crypto world, there’s growing excitement about another potential rise. Interestingly, Ether is showing a robust ‘buy’ indication, following a pattern seen in 2023.
Ethereum reflects bullish setup from 2023
From Q2 to Q4 in 2023, Ethereum experienced a decline, but then entered a period of collection (represented by the green box on the chart) during Q3 and the early part of Q4. When ETH broke free from this accumulation phase, it also surpassed its falling resistance trendline, indicating a shift in trend.
After the altcoin closed above its 50-, 100-, and 200-day moving average lines in one day, it was a clear bullish signal. This event sparked a 129% surge in Ethereum by the end of Q1 2024, peaking at $4,100 – its highest point that year.
Currently, Ether is displaying an identical bullish pattern that it showed between Q2 and Q4 last year, followed by a prolonged buildup in Q3. As you can see on the chart, this pattern has been repeated in recent days. Notably, each positive convergence point predicted for 2023 has been reached. Ether has surpassed the descending trendline and moved beyond its long-term accumulation zone, ensuring a daily closing above the 50, 100, and 200-day moving average levels.
Should the pattern of price changes repeat itself, it’s possible that the value of Ethereum could fall within a price band of approximately $6,000 to $6,500 by the first quarter of 2025.
Ethereum ETFs welcome $132M inflows
Institutions have actively bought Bitcoin using spot BTC ETFs, but their interest in Ether hasn’t been as strong. However, Ethereum’s recent price surge has sparked renewed attention from shrewd investors, as evidenced by a $132 million positive influx into Ethereum ETFs between November 6th and 7th.
Information from Farside showcases a significant difference between the past two days and the preceding two weeks, with Ethereum showing $63.2 million in withdrawals as recent as November 4th.
Currently, venture capitalist Henrique Centieiro thinks that Ethereum is moving into a state of “scarcity.” He offers several explanations for this belief, suggesting that a decrease in supply combined with an increase in demand could lead to a significant surge in value for this alternative cryptocurrency.
In 2024, it’s predicted that investors will reap beneficial returns from Ether over an extended period, given that approximately 42.6% of Ether is currently locked in staking contracts and exchange reserves have hit all-time lows.
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2024-11-09 00:10