Key Points
- Ethereum’s price experienced minor movement in the last 24 hours, but a resumption of the bull rally could be imminent.
- Ethereum successfully broke out of a falling wedge pattern a few days ago, potentially setting the stage for a significant price increase.
Ethereum’s price has seen limited fluctuation over the past day.
Market indicators suggest that the cryptocurrency’s bull rally could soon restart.
Ethereum’s Bullish Breakout
A few days ago, Ethereum successfully broke above a falling wedge pattern.
This development has kept the leading altcoin on track and profitable for investors.
If this trend continues, Ethereum could have a long way to ascend.
World Of Charts, a recognized crypto analyst, recently tweeted about Ethereum’s breakout from the falling wedge pattern.
The cryptocurrency’s price has been consolidating within this pattern since March before finally breaking out a few days ago.
Since then, Ethereum’s price has risen by nearly 5%.
This increase could just be the start, with the breakout having the potential to push Ethereum’s price up by 45%.
However, the last few hours have seen less volatility, temporarily halting Ethereum’s gains.
Ethereum’s Market Performance
According to CoinMarketCap, Ethereum’s price has only increased slightly in the last 24 hours.
At the time of writing, Ethereum was trading at $3,131.77 with a market capitalization of over $376 billion.
An analysis of data from CryptoQuant revealed that Ethereum’s net deposit on exchanges was lower than the average of the past seven days.
This indicates that selling pressure on Ethereum is low.
Furthermore, both its Transfer Volume and Active Addresses remained high, which is a positive sign.
However, some metrics raised concerns.
Data from Glassnode showed that Ethereum’s NVT ratio had risen sharply over the past few days.
An increase in this metric suggests that Ethereum is overvalued and a price correction could be imminent.
Moreover, Ethereum’s fear and greed index was at 83% at press time, indicating that the market is in an “extreme fear” phase.
When this metric reaches such levels, it suggests that a price drop is likely.
The MACD displayed a bullish crossover.
Additionally, Ethereum’s Relative Strength Index (RSI) registered an uptick from the neutral mark.
Its Money Flow Index (MFI) also followed a similar trend.
These indicators suggest that the chances of a major price correction are slim.
