Ethereum’s [ETH] current situation hints at an upcoming breakout, with traders noticing the formation of a triple bottom pattern in 2024 reminiscent of the rally seen in 2021.
As ETH is valued at $2,314, showing a 0.31% increase in the last 24 hours, there is a sense of optimism surrounding the potential for significant gains in Q4.
Could the triple bottom pattern lead to a bullish turnaround?
The triple bottom pattern is widely recognized for signaling a potential bullish reversal. Looking back at 2021, Ethereum followed a similar pattern before embarking on a massive uptrend.
If Ethereum continues on this path, a break above $3,500 could further boost investor confidence moving forward.
To affirm a bullish trend, Ethereum must overcome crucial resistance levels, with $2,800 being the initial significant milestone. Surpassing this could pave the way for a test at $3,500.
Analysis of Ethereum’s Strength
Technical indicators suggest a positive outlook for Ethereum. The Relative Strength Index (RSI) currently stands at 45.63, indicating a balanced market without extreme overbuying or overselling.
Observing the Bollinger Bands (BB), Ethereum appears to be trading within a narrow range, hinting at potential upcoming volatility.
A significant breakout above the upper band has the potential to initiate a strong rally, making it imperative to monitor these indicators closely in the days ahead.
Do Exchange Flows Indicate a Potential Rally?
The data on exchange flows is sending mixed signals but tilts towards a possible bullish movement at the moment.
Over the past 24 hours, exchange inflows have risen by 0.82% to 349.05K ETH, suggesting some selling pressure as traders deposit their coins onto exchanges.
In contrast, exchange outflows have increased by 0.77% to 328.83K ETH during the same period, showcasing that a considerable number of investors are keeping their coins away from exchanges.
A continuous rise in outflows might imply a decrease in selling pressure and a growing belief in the upward potential of ETH.
Ethereum Network Growth: Is Expansion Occurring?
The growth of Ethereum’s network has been relatively slow, with only 27,181 new addresses added recently and a 0.24% growth rate in the last 24 hours up to now.
This neutral signal indicates that while Ethereum’s network is steady, there is no significant surge in new user engagement at the moment.
Anticipating a Breakthrough in Q4
Ethereum finds itself at a crucial juncture. While technical patterns like the triple bottom, RSI, and Bollinger Bands hint at a potential breakout, indicators such as network growth and exchange flows present a more cautious outlook.
With anticipated volatility, the final quarter of the year is likely to decide whether Ethereum can surpass key resistance levels and regain the positive momentum that propelled its 2021 rally.