The second-largest cryptocurrency saw significant volatility over the past week, eventually falling below $2,500.
Despite the slight decline, many analysts still expect a strong rally, with targets extending to $3,000 and higher.
Big Move Incoming?
Ethereum (ETH) has slipped to around $2,440 (per CoinGecko), but according to Ali Martinez, it remains contained within its 4-hour channel. The analyst said the price has reached the structure’s lower boundary and that he’s now monitoring a potential rebound toward the mid-range and eventually the upper boundary near $2,570.
Martinez described this as a key level, predicting that a strong 4-hour close above (backed by volume) could confirm a breakout and set the stage for a jump toward $2,700 and even $3,000.
BLADE and Mikybull Crypto also weighed in. The former spotted a double-bottom formation on ETH’s price chart and predicted the asset is gearing up for “the biggest move of the cycle,” anticipating an explosion beyond $10,000 sometime next year.
The latter maintained that Ethereum looks “extremely bullish” in its current condition, arguing that investors wouldn’t want to miss the big run about to unfold.
The declining amount of ETH stored on crypto exchanges strengthens the positive outlook. Earlier this week, the figure dropped to a fresh ten-year low of around 14.6 million coins, suggesting that investors continue to shift from centralized platforms to self-custody solutions. This, in turn, reduces immediate selling pressure.
Meanwhile, whales keep accumulating Ethereum. Just a few days ago, BitMine announced another ETH acquisition worth around $660 million, increasing its total holdings to 5,956,378 units and bringing it closer to its goal of controlling 5% of the asset’s circulating supply. Moreover, Lookonchain revealed that a mysterious market player swapped 512 WBTC ($38.64 million) and 354 cbBTC ($26.73 million) for 26,924 ETH ($64.57 million).
The Concerning Elements
On the downside, ETH’s Relative Strength Index (RSI) hints that bearish momentum could persist in the near term. The ratio has climbed to 76, signaling that the asset has entered overbought territory, which typically signals an impending pullback.
Waning institutional interest is also a concern. Spot ETH ETFs attracted substantial capital over the last several weeks, yet in the past two days there were massive outflows, suggesting that hedge funds, pension funds, and other conservative investors have reduced their exposure to the asset.
Source: CryptoPotato
