Ethereum had a tough time gaining traction recently, hitting a wall around $1900 despite a generally positive market. But things might be looking up!
Bullish Chart Patterns Suggest a Rally
A crypto analyst, Trader Tardigrade, spotted a “Bull Pennant” pattern on Ethereum’s daily chart. This is a good sign, suggesting a continuation of the upward trend. Think of it like this: after a big price jump, the price consolidates in a narrowing range (the pennant). A breakout above this range confirms the uptrend is continuing. Trader Tardigrade believes Ethereum’s recent breakout from this pattern signals a strong upward push.
They’re predicting a rally back to $2250, and potentially even higher if it breaks through that level. This could trigger a longer-term uptrend. This prediction is supported by a bullish signal from the Stochastic Indicator, which has shown similar patterns before, leading to significant price increases (over 100%, 169%, and 99% in the past two years).
Cooling Spot Volume: A Positive Sign?
On-chain analyst Darkfost points out that Ethereum’s spot volume has been decreasing recently. While this might seem negative, they argue it could actually be a good thing. Lower volume during a correction can help reduce volatility and selling pressure. However, Darkfost emphasizes this doesn’t mean Ethereum has hit bottom; investors should remain cautious.
