Ethereum Price Forms Megaphone Bottom
Crypto analyst TradingShot has recently revealed an interesting development in the Ethereum price chart. According to a TradingView post, Ethereum has formed a megaphone bottom similar to what was seen back in March 2020. This pattern indicates a potential bullish outlook for the altcoin.
TradingShot pointed out that Ethereum is currently in the first week of a rebound after experiencing three consecutive red weeks where it failed to break above the 1-week MA50. The analyst highlighted that ETH is following a lower lows trendline, marking the bottom of a 1-year megaphone since the high of March 11, 2024.
The market has previously witnessed long-term megaphone consolidation periods, similar to the one Ethereum is currently experiencing. The last time Ethereum formed this megaphone pattern was between June 2019 and March 2020, following a bearish leg after the COVID crash. During that period, the Ethereum price eventually broke upwards.
Looking at the Fibonacci retracement levels, TradingShot predicted that Ethereum could potentially test the 1.5 Fibonacci extension at $6,000 before reaching a peak by the end of the year. Another crypto analyst, Crypto Patel, suggested that ETH could rally to as high as $8,000, particularly in phase E of its bull run.
Bullish Fundamentals For ETH
Despite recent underperformance, Ethereum has strong fundamentals that could fuel a reversal in its price trajectory. Alternative Bull, a crypto analyst, noted that the exchange reserves of Ethereum are decreasing significantly, leading to a limited supply. This could trigger a parabolic move for ETH in the near future.
Additionally, Ali Martinez, another analyst, highlighted that whales are actively accumulating ETH, indicating bullish sentiment towards the altcoin. Recent withdrawals of 360,000 ETH from crypto exchanges further suggest a potential supply shock that could drive the Ethereum price higher.
Furthermore, the introduction of ETH ETFs, with asset managers like Bitwise seeking approval to include staking in their funds, could also contribute to a supply shock by taking more ETH out of circulation. Institutional investors may choose to stake their ETH to earn yields, reducing the available supply in the market.
As of the latest data from CoinMarketCap, the Ethereum price is trading around $1,969, showing a slight decline of nearly 2% in the last 24 hours. Despite this, the overall outlook for Ethereum remains positive, with various factors pointing towards a potential price surge in the near future.
In conclusion, Ethereum’s recent price formation and bullish fundamentals suggest that the altcoin may be gearing up for a significant upward movement. With market analysts predicting a potential rally to new highs, Ethereum investors and traders should keep a close eye on these developments as they unfold.
[Source: TradingShot on TradingView]