Key Points
The price of Ethereum (ETH) has been stagnant this month.
Cryptocurrency investors are currently holding back, but certain fundamental and technical factors might cause a surge.
Ethereum’s Potential Catalysts
On Tuesday, the second-largest cryptocurrency, Ethereum, was trading at $2,700.
This represents a 35% decrease from its peak in November.
Interestingly, this price matches its trading value on the same day in 2024.
Several catalysts could potentially drive Ethereum’s price up in the upcoming months.
Firstly, spot Ethereum ETFs have been consistently receiving inflows from Wall Street investors.
They have reported daily inflows on 7 out of the last 10 days this month.
Since their inception, the total inflows have reached $3.15 billion.
According to CoinGlass data, the number of Ethereum coins in centralized exchanges has significantly decreased in recent days.
The current count is 15.34 million coins, a decline from the month’s high of 16.2 million.
This fall in balances indicates that a large number of ETH holders are refraining from selling and are instead keeping them in self-custody.
Thirdly, the Ethereum network appears to be catching up with Solana (SOL) in terms of decentralized exchange transactions.
Ethereum protocols handled over $2.28 billion in the past 24 hours, compared to Solana, which has faced criticism after several meme coin rug pulls.
The most recent was Libra, which experienced a surge and crash last weekend.
Ethereum’s Technical Outlook
Short-term charts suggest a strong bearish breakdown for Ethereum after the formation of a death cross pattern.
This pattern emerges when the 50-day and 200-day moving averages intersect.
However, a detailed examination of long-term charts indicates a potential rebound in ETH price.
The weekly chart demonstrates that the accumulation and distribution indicator has been on the rise, suggesting continual token accumulation by investors.
The chart also reveals an ascending triangle pattern, consisting of an ascending trendline and a horizontal resistance.
A bullish breakout occurs when these two lines approach their convergence.
Additionally, Ethereum has formed a megaphone pattern, another positive sign.
The issue is that the bullish breakout might take a while since it is indicated on the weekly chart.
Signals on a weekly chart can take months or even over a year to materialize.
A bullish breakout above the triangle’s upper side at $4,061 could lead to further gains.
This could potentially reach the all-time high of $4,945, followed by $5,000.
Please note, this article is intended for educational purposes only and does not constitute investment advice.
