Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is showing signs of a bullish rally on the daily timeframe. Despite the recent downturn in the crypto market, Ethereum’s price action suggests a shift in sentiment from bearish to bullish.
Technical analysis indicates that Ether has broken out of a bullish falling wedge pattern that has been forming since November 2024. This breakout has led to a significant shift in sentiment among traders and investors. If Ethereum successfully closes a daily candle above the $3,400 level, it could potentially surge by 20% to reach $4,100 in the near future. Currently, Ether is facing resistance at $3,400, which could act as a key level for further gains.
The Relative Strength Index (RSI) is currently at 55, indicating that Ethereum has the strength to sustain its upward momentum. However, on-chain metrics show mixed sentiment, with long-term holders reportedly selling their assets. Data from CoinGlass reveals a significant inflow of $103 million worth of Ethereum into exchanges, potentially signaling a sell-off.
Despite this, traders are heavily betting on the long side, indicating a bullish outlook for Ethereum. The major liquidation areas are at $3,305 and $3,370, where bulls and short sellers are over-leveraged, respectively. These on-chain metrics suggest that bulls are dominating the asset and could help Ethereum break through the $3,400 resistance level.
At the time of writing, Ethereum is trading near $3,350 with a price surge of over 1.50% in the past 24 hours. Trading volume has also increased by 10%, indicating increased participation from traders and investors following the recent breakout. Overall, Ethereum’s technical indicators and on-chain metrics point towards a potential upside rally in the near future.