Key Points
- The ETH/BTC pair is indicating a bullish trend on the monthly timeframe, potentially leading to a positive price movement.
- Ethereum (ETH) is witnessing increased buying activity and accumulation, hinting at a potential rally.
Despite a recent drop in its price, Ethereum (ETH) seems to be showing signs of a potential rally.
The ETH/BTC pair is currently trading within a bullish pattern, suggesting a possible positive price movement. Increased buying activity is also evident, indicating a shift in traders’ outlook.
Emergence of a Bullish Pattern
Despite the recent decline in Ethereum’s price, a new bullish pattern seems to be emerging. This high-probability setup suggests a potential shift in market dominance from sellers to buyers.
The ETH/BTC pair is exhibiting signs of a potential rally. A symmetrical triangle pattern has been noticed, with the price oscillating between converging support and resistance levels. The presence of this pattern on the monthly timeframe strengthens the possibility of an upward breakout.
If this pattern plays out, Ethereum could rally. Three key levels to watch are 0.0540, 0.0859, and 0.1202. As the ETH/BTC trends higher toward these levels, it is also expected to positively impact the ETH/USDT price.
Sellers Losing Momentum
The market’s selling pressure seems to be fading. The Relative Strength Index (RSI), which has been on a downward trend, is now nearing the oversold region. This indicates a potential resurgence in buying activity, which could drive Ethereum’s price up.
The Chaikin Money Flow (CMF) indicator, which measures the balance of buying and selling pressure, is also showing signs of an upward trend. This suggests that buyers are regaining control, potentially leading to a market reversal and a rise in Ethereum’s price.
An increase in the accumulation of Ethereum has also been observed, indicating a long-term holding perspective among investors. The number of addresses holding Ethereum has gone up by 60%, accounting for 16% of the total supply. This marks a significant shift in investor behavior and could be a bullish indicator for Ethereum’s price.
If these trends continue, Ethereum could be poised for a significant upward movement in the near future.