Ethereum Price Analysis: Is a Bullish Breakout Imminent?
In the midst of Bitcoin, XRP, Solana, and other cryptocurrencies showing significant strength, Ethereum seems to be stuck in a tight range, causing uncertainty in its next price action. Despite this, technical indicators suggest that the price of ETH could potentially surge to $5000 or even $8000 in the next bullish wave. Currently, the price appears to be on the verge of a breakout, signaling a potential explosion in the near future.
Decoupling from Bitcoin
While Bitcoin has been making substantial moves in the market, Ethereum has recently decoupled from its previous trend. The correlation between BTC and ETH has decreased significantly since the beginning of 2024. This divergence has led to Ethereum potentially experiencing a significant pullback while Bitcoin continues its bullish rally.
Furthermore, the recent launch of a new memecoin on Solana by Trump has attracted a significant amount of liquidity from the market. The trading volume on Solana’s DEX has reached close to $10 billion, surpassing half of the entire DEX volume. In contrast, Ethereum’s DEX volume has dropped below $3 billion from its previous highs, leading to speculation that traders may be selling their ETH for SOL to invest in TRUMP.
Technical Indicators and Price Action
Despite the challenges, the ETH price rally remains within a bullish pattern, indicating a potential rebound in the near future. However, bearish signals have started to emerge, which could pose a threat to the price of ETH.
On the daily chart, ETH is facing pressure from both sides, with a weekly close likely to determine the next move. The DMI levels indicate a potential bearish flip, as the -Di is close to surpassing the +Di. Additionally, the MACD is showing signs of a bearish crossover, with the weekly buying volume diminishing. As a result, there is a possibility of the ETH price dropping below $3000 this weekend. However, the support zone between $2918 and $2823 could provide a strong foundation for a rebound.
Despite the challenges, the overall sentiment remains bullish for Ethereum, with a target of $5000 still in play as the price remains within a decisive symmetrical triangle.