Last week saw Ethereum [ETH] surge by 11%, surpassing the $2700 mark, a significant threshold that well-known analyst Peter Brandt had identified as a potential catalyst for a bullish turnaround.
Brandt reiterated his stance as ETH broke above the resistance level of $2700, which formed part of a bullish inverse head-shoulder pattern.
“Analyzing the closing price chart of $ETH shows an inverted H&S pattern. I have no position in ETH currently.”
Is the Upward Momentum for ETH Here to Stay?
Another analyst, Crypto McKenna, expressed a similarly positive outlook for ETH’s upward trajectory.
He highlighted that reclaiming the $2850 level (historical support in Q2/Q3) could propel the altcoin towards $3600, especially in the event of a victory for Trump in the upcoming elections.
“The current scenario indicates that $ETH has potentially bottomed out and is poised for an upward move. Once $2850 is reclaimed, that will be my signal to adopt a risk-on approach.”
The bullish projections were also backed by a growing interest from whales in recent weeks.
As per Hyblock’s Whale vs. Retail Delta, the indicator turned positive and reached levels last witnessed during the approval of US spot ETFs in July.
This indicated that whales were accumulating more long positions compared to retail traders in the Futures’ perpetual market, showcasing institutional interest and positive outlook for ETH.
Furthermore, the ongoing uptrend demonstrated strength, with the Average Direction Index (ADX) showing a reading of 50.
If this momentum persists, it could propel ETH further, particularly amidst a surge in netflow on various exchanges.
Confirmation of the bullish sentiment among institutional players was validated by the Binance Top Trader Long/Short ratio. At present, the ratio indicates that nearly 73% of open positions on ETH are long.
Therefore, top traders on the platform are anticipating a continued rally for ETH, aligning with the optimistic forecasts put forth by McKenna and Brandt.
Currently, ETH is priced at $2,723, sitting around 48% below its cycle high of $4K. This suggests that the current value of ETH presents an attractive risk-reward profile and a potential opportunity for significant gains if the upward trend sets its sights on surpassing the March peak of $4K.