Ethereum (ETH) experienced an impressive 11% increase last week, surpassing the $2700 mark that well-known analyst Peter Brandt had identified as a potential catalyst for a bullish turnaround.
Brandt stood by his prediction as ETH broke through the resistance level of $2700, forming a bullish inverse head-and-shoulder pattern.
“The closing price chart for $ETH showcases an inverted H&S pattern. I am currently neutral on ETH.”
Will the Upward Trend of ETH Persist?
Another market expert, Crypto McKenna, also voiced an optimistic stance on ETH, projecting further upside potential.
By highlighting the significance of reclaiming $2850 (support in Q2/Q3), he suggested that breaching this level could propel the altcoin towards $3600, especially in the event of a Trump victory in the upcoming elections.
“The current position of $ETH indicates a potential bottom with strong prospects for an upward movement. Reaching $2850 would serve as a signal for me to adopt a risk-on strategy.”
This positive outlook was bolstered by a growing interest from large investors over the past few weeks.
According to Hyblock’s Whale vs. Retail Delta, the indicator entered positive territory, reaching levels last observed during the approval of US spot ETFs in July.
This shift signified that institutional investors were accumulating more long positions than retail traders in the Futures’ perpetual market, underscoring confidence and expectations of an increase in ETH’s value.
Furthermore, the recent uptrend demonstrated strength, as evidenced by the Average Direction Index (ADX) registering a reading of 50.
If this upward momentum continues, it could propel ETH further, especially amidst a surge in recent exchange netflows.
The prevailing bullish sentiment from institutional investors towards ETH was further corroborated by the Binance Top Trader Long/Short ratio. Presently, approximately 73% of positions on ETH were long, indicating a consensus among top traders on the exchange that ETH’s rally is likely to extend, aligning with the optimistic forecasts of Mckenna and Brandt.
At the time of reporting, ETH was trading at $2,723, marking a 48% difference from its peak in this cycle at $4K. This suggests that the current value of ETH presents an attractive risk-reward ratio and an advantageous opportunity if the uptrend aims to reach the March high of $4K.