Ethereum, the second largest cryptocurrency by market capitalization, has shown a notable uptrend since the second week of January. This period coincided with the long-awaited approval of the Spot Bitcoin ETF, a development that significantly contributed to Ethereum’s price surge from $2,170 to $2,714. In contrast, Bitcoin has shown continued volatility during this period. As Coingape previously reported, there was a substantial increase in whale accumulation for Ethereum in December 2023. This trend suggests that “smart money” investors have shown a greater bias towards Ethereum than Bitcoin, despite a historical milestone.
Will Bitcoin Continue to Rise as Ethereum ETF Could Be the Next Thing Investors Focus on?
Ethereum price project strength to prolong recovery.
- ETH price may prolong the recovery until the expanding channel is intact.
- A falling coin price could find increased demand pressure at the $2430 and $2300 supports
- Intraday trading volume in Ether is $11.03 billion, indicating a gain of 10.3%.
Ethereum Price | TradingView chart
The Ethereum coin has followed a bullish trajectory over the past four months, where the price jumped from $1,522 to a recent high of $2,714, registering a growth of 77%. A look at the daily time chart shows that this rally can be followed using two diverging trend lines showing the formation of an expanding channel.
The price of the coin has bounced at least three times from both trend lines, indicating that market participants have targeted this pattern structure. In theory, this chart setup reflects the increasing volatility of an asset but provides a directional trend, once the price deviates from one of the trend lines.
Amid the current market downturn, Ethereum price recently returned from a high of $2,714 to a 7.25% drop to $2,517. This bear within the chart range could drop the value of ETH by another 8-9% to lower the trendline around $2300.
This is indicated by some recent insights from the on-chain analysis company Santiment. In just one week, Ethereum’s price dominance over Bitcoin increased, reaching a notable increase of +22.4%. The network is experiencing rapid growth, averaging 89.4K new $ETH addresses per day, with an impressive increase to 96.3K new wallets yesterday. Ethereum’s presence in exchanges is decreasing, going from 8.15% to 8.10%, approaching the historic low of 8.05%.
These developments predict that ETH price is likely to rebound from a lower trendline that could increase its value above $2700 to chase the $3000 mark.
The ETH/BTC pair bounces off crucial support
Based on the latest insights from respected analyst Michaël van de Poppe, Ethereum is showing a notable rebound, potentially signaling an impending uptrend. To firmly establish this trend, Ethereum needs to break above the 0.06 BTC level. The observation of a weekly bullish divergence is a strong indicator of Ethereum’s growing momentum, suggesting that we could see considerable strength in the market in the coming months.
- Exponential Moving Average (EMA): The price of ETH above the daily EMAs (100 and 200) accentuates the overall bullish trend.
- Relative Strength Index (RSI): The daily RSI above 50% reflects the fact that buyers have an advantage on this asset.
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