The performance of Ethereum [ETH] has been a major talking point lately due to its failure to reach a new all-time high (ATH) in 2024 while Bitcoin achieved its ATH in March.
This has raised concerns about Ethereum potentially losing momentum. Nevertheless, recent activity in the ETH/USDT pair is providing optimism for Ethereum supporters.
Hyblock Capital’s data reveals a substantial 70% imbalance in orderbooks for ETH at a 1-2% depth. Historically, when ETH encounters a similar 70% bid imbalance, prices tend to hit a bottom before rising again.
The existing bid imbalance suggests that Ethereum could follow this upward price trend once more.
Ethereum’s Formation of an Ascending Triangle
At the present moment, Ethereum is forming an ascending triangle on the weekly timeframe, with its price showing respect to the 200-moving average.
This consolidation pattern strengthens the bullish case for ETH, as ascending triangles commonly precede price breakouts.
Moreover, the 70% bid imbalance adds weight to the likelihood of an upward movement in the charts.
Consolidation phases typically come before significant price shifts. In this scenario, a breakout could propel ETH to higher levels.
Weekly RSI Heatmap Insights
The weekly Relative Strength Index (RSI) heatmap suggests that currently, many cryptocurrencies are in a weak or neutral zone, with an average RSI of 40.22%.
This indicates that the market is moving away from being oversold at this moment.
As the RSI approaches more neutral levels, it could signal a possible uptrend for ETH, especially with the 70% bid imbalance hinting at a potential bottom. This aligns with expectations of a price surge on the charts.
Thriving ETH-Based Protocols
Recently, Vitalik Buterin, the co-founder of Ethereum, expressed his plan to donate his Layer 2 (L2) and project tokens to back public goods and charitable causes within the ETH ecosystem.
This decision further fortifies Ethereum’s long-term prospects.
While some traders are speculating about Solana’s advancements in the decentralized finance (DeFi) space, Ethereum retains its dominance. Kaito AI analysts confirmed that Ethereum maintains a significant share of mind in the DeFi sector.
Major DeFi platforms like Aave, Pendle, and Lido operate on ETH, indicating potential for increased adoption of ETH and further supporting its price surge.
Cumulative Flows in Ethereum ETFs
Nevertheless, one area of concern emerges – Cumulative flows in Ethereum-based ETFs have hit an all-time low. The net flows in ETH ETFs are currently negative, standing at $562.3 million.
While the existence of an ETF is beneficial for Ethereum, the lack of demand poses a risk.
If demand does not pick up, ETF issuers might be compelled to shut down their products.
However, with the continuous advancements in the Ethereum ecosystem, a turnaround in prices could be imminent.