Key Points
- Ethereum (ETH) experienced a bullish price surge, potentially leading to a $4k value.
- Despite positive metrics, some indicators suggest the bullish momentum may not last.
Ethereum (ETH) recently surprised investors with a bullish price surge on May 17th.
The price of the token broke above a bullish pattern, suggesting a potential rise to $4k in the near future.
Ethereum’s Bullish Momentum
According to CoinMarketCap, Ethereum investors saw profits last week with a price increase of over 6%.
The value of ETH increased by over 2.6% in the last 24 hours, trading at $3,108.31 at the time of writing.
This bullish price action positively affected the token’s social metrics, with its Social Volume remaining high.
The Weighted Sentiment also entered the positive zone, indicating a dominant bullish sentiment in the market.
This price increase allowed Ethereum to break above a bullish pattern, hinting at a rise towards $4k.
Crypto analyst World Of Charts pointed out that Ethereum broke out of a falling wedge pattern, which could result in a 50% price increase, allowing Ethereum to reclaim $4k.
Metrics Analysis
An analysis of CryptoQuant’s data revealed that Ethereum’s net deposit on exchanges was low compared to the last seven days’ average, indicating less selling pressure.
The Coinbase premium also showed a dominant buying sentiment among U.S. investors.
However, not all indicators were bullish.
Data from Glassnode revealed that Ethereum’s Network To Value (NVT) ratio registered a sharp uptick, suggesting that the asset may be overvalued and hinting at a potential price decline.
Ethereum’s Money Flow Index (MFI) also suggested a possible price correction.
However, the MACD showed a bullish crossover, and the Chaikin Money Flow (CMF) also supported the bulls as it moved upwards.
According to data from Hyblock Capital, if Ethereum’s bull rally continues, its liquidation could rise near the $3.2k zone.
A successful breakout above that could lead it to reach $3.5k in the coming days before targeting $4k.
However, if Ethereum’s price turns bearish, its value might drop to $2.85k.
