Ethereum’s recent price performance has been somewhat unimpressive. After hitting a peak of $4,100 on December 2nd, ETH experienced a notable 20.13% drop, reaching $3,200 per Trading View. This rapid decrease indicates a persistent selling pressure prevailing in the market.
Despite the selling pressure, a new bullish formation has emerged, signaling a high likelihood that sellers could soon lose control as buyers enter to push prices upwards.
Emerging Positive Formation: Is an ETH Rally Imminent?
The ETH/BTC pair is displaying indications of a potential upward movement with the emergence of a promising pattern. A symmetrical triangle structure has formed, with the price fluctuating between converging levels of support and resistance.
The presence of this pattern on the monthly timeframe enhances the chances of a breakout to the upside.
Currently, the price is hovering near the lower end of the pattern, at the support level, indicating a possible significant surge in value.
If this pattern unfolds as expected, ETH could rally, with three essential levels to monitor: 0.0540, 0.0859, and 0.1202. This suggests that acquiring 1 ETH with BTC may become pricier.
As the ETH/BTC pair moves closer to these levels, it will also have a positive impact on the ETH/USDT price, currently at $3,200. If the rally materializes, ETH holds the potential to reattain its previous highs around $4,000 and potentially surge higher.
Decline in Sellers’ Influence
Sellers in the market seem to be losing their dominant position. The Relative Strength Index (RSI), which had been in a downtrend for months, is now nearing the oversold region, with a current value of 32.19.
Approaching the oversold area (marked at 30) indicates a reduction in selling pressure, hinting at a possible resurgence in buying interest. If this trend continues, ETH’s value could rise, becoming more expensive as demand strengthens.
The diminishing selling pressure is also evident in the Chaikin Money Flow (CMF) indicator, which is starting to climb higher, heading back towards positive territory.
CMF assesses the balance between buying and selling forces in the market. A shift towards an upward trend suggests that buyers are gaining the upper hand, with their trading volume surpassing that of sellers.
This upward momentum could bolster ETH’s value, indicating a potential market reversal and an uptick in asset prices.
Increased Accumulation of ETH
Data from CryptoQuant indicates a surge in the ongoing accumulation of Ethereum (ETH), signifying more holders are adopting a long-term approach towards the asset.
Currently, the number of addresses holding ETH has surged by 60%, accounting for 16% of the total supply—around 19.4 million ETH—up from 10% in August, marking a notable shift in investor behavior.
This accumulation trend is typically viewed as a bullish sign, showcasing increased investor confidence and the potential for a substantial price upsurge.
Should this trend persist, ETH could be poised for a significant upward movement in the near future.