Ethereum’s Positive Signals Could Propel ETH Price by 93%
Ethereum, the popular cryptocurrency token, is receiving multiple favorable signals from on-chain metrics and technical setups. Despite recent market adjustments, Ethereum has shown resilience and potential for future growth.
Although Ethereum experienced a significant 44% drawdown, harsher than Bitcoin’s 21%, its rapid recovery demonstrates its ability to withstand market movements.
An analysis reveals that Ethereum’s price finds consistent support at the Short-Term Holder (STH) Cost Basis. This indicates a strong holding pattern among recent investors and suggests a level of market confidence.
Furthermore, Long-Term Holders (LTH) of Ethereum continue to have confidence in the asset’s value proposition. Investors are not rushing to divest, which bodes well for Ethereum’s price trajectory despite underperforming compared to Bitcoin.
Reduced volatility is another positive indicator for Ethereum. The cryptocurrency has experienced less severe corrections since the FTX lows, making it more appealing to retail and institutional investors.
The potential approval of Ethereum ETFs is also significant. Similar to the impact of Bitcoin ETFs, this could enhance accessibility and increase demand for Ethereum.
Additionally, while Ethereum currently lags behind Bitcoin in speculative interest, this suggests significant growth potential as it catches up to more mature market cycles.
In terms of price patterns, Ethereum has formed two bullish patterns that may attract more buyers. The first pattern is known as the “falling wedge” and is visible in the 3-day timeframe. This pattern typically signals a likely reversal to the upside. According to technical analysis, the ETH price could rally over 37% to reach a theoretical price target of $4,123.
Another bullish cue for the Ethereum token is the “bull flag” pattern. Assets with strong uptrends often form this pattern. The consolidation period after a steep rise forms the flag, and a breakout from this pattern typically results in a powerful uptrend. Technical analysis suggests that ETH price could rise by 93% to reach a projected price target of $5,772 after confirming the pattern.
Overall, Ethereum’s bullish cues and positive price patterns indicate the potential for a significant jump in its price.