Recent discussions surrounding Ethereum’s [ETH] price performance have been buzzing, especially after it missed hitting a new all-time high (ATH) in 2024. This is in stark contrast to Bitcoin, which achieved its own ATH in March.
The lackluster performance of ETH has triggered concerns about a potential loss of momentum. However, there have been some positive signs in the ETH/USDT pair that are catching the attention of Ethereum supporters.
A detailed analysis by Hyblock Capital uncovered a significant orderbook disparity of 70% for ETH within a 1-2% depth. Historically, a bid imbalance of this scale in ETH has typically signaled a price bottom and an ensuing uptrend.
The prevailing bid imbalance seems to suggest a possibility of a similar uptrend trajectory for ETH.
Observing Ethereum’s Ascending Triangle Formation
At the time of writing, Ethereum was seen forming an ascending triangle pattern on the weekly chart, with its price showing respect towards the 200-moving average.
This consolidation pattern typically supports a bullish scenario for ETH, as ascending triangles are usually followed by significant price breakouts.
The 70% bid imbalance further bolsters the likelihood of an upward price movement.
Consolidation phases are often precursors to notable price swings. In this instance, a breakout could propel ETH to higher price levels.
Insights from Weekly RSI Heatmap
Analysis of the weekly Relative Strength Index (RSI) heatmap shows that currently, many cryptocurrencies are positioned in the weak or neutral RSI zones, with an average RSI of 40.22%.
This indicates a transition in the market from an oversold condition.
As the RSI nears more neutral levels, it could signal a potential upward trend for ETH, especially when considering the 70% bid imbalance indicating a likely price floor. This scenario aligns with expectations of a bullish trend on the price charts.
Upsurge in ETH-Based Protocols…
Vitalik Buterin, the co-founder of Ethereum, recently made public his plans to donate his Layer 2 (L2) and project tokens to support public goods within the ETH ecosystem and charitable endeavors.
This move not only enhances Ethereum’s long-term outlook but also underscores its commitment to sustainability.
Despite speculations about potential competition from Solana in the decentralized finance (DeFi) landscape, Ethereum continues to hold a dominant position. Notably, analysts at Kaito AI affirmed that Ethereum still commands a significant share of the DeFi market.
Key DeFi platforms like Aave, Pendle, and Lido operate on the ETH network, indicating a probable increase in ETH adoption and a bolstering of its price trajectory.
Tracking Ethereum ETF Cumulative Flows
However, there is a noteworthy concern regarding the cumulative flows of Ethereum-based ETFs, which have reached an all-time low. Currently, the net flows into ETH ETFs stand at a negative $562.3 million.
While the presence of an ETF for Ethereum is positive, the tepid demand poses a potential risk.
If demand does not pick up, some ETF providers may be compelled to close their offerings.
Nevertheless, with the ongoing developments within the Ethereum ecosystem, a price reversal could be looming on the horizon.