Ethereum (ETH) is currently showing signs of a potential trend reversal on the weekly chart, forming a bullish W-pattern. The altcoin is holding above the critical $2,947 support level, which now serves as the neckline of this formation. If Ethereum breaks out above this neckline resistance, it could signal significant upside potential, with price targets set at $4,103, $4,788, and $5,568.
The W-pattern on Ethereum’s chart reflects a shift from bearish to bullish momentum, emphasizing the importance of maintaining support above $2,947 for the pattern to play out successfully. A confirmed breakout above $3,200 could pave the way for rapid upward movement towards the $4,100 resistance level.
In terms of momentum, the Relative Strength Index (RSI) for Ethereum is currently at 46.15, indicating a balance between buyers and sellers in the market. The RSI’s stabilization near its midline suggests waning bearish pressure, with a move above 50 potentially signaling renewed bullish momentum.
Additionally, Ethereum’s Market Value to Realized Value (MVRV) ratio indicates fair valuation at the moment, hovering near neutral levels. Historically, MVRV values above 1.2 have triggered selling pressure, while values below 0.8 have attracted buyers. As Ethereum approaches higher price targets, the ratio could enter overvaluation territory, prompting caution among long-term investors.
The long/short ratio for Ethereum shows that 84.94% of accounts are long, indicating strong bullish sentiment for the altcoin. While this imbalance suggests potential upward price momentum, it also introduces the risk of sharp price corrections if market sentiment shifts or long liquidations occur during volatility.
Overall, Ethereum’s weekly chart, technical indicators, and valuation metrics point to a pivotal moment for the cryptocurrency. The W-pattern, neutral RSI, and balanced MVRV ratio highlight Ethereum’s potential for a bullish breakout if key levels are maintained. As investors closely monitor these developments, Ethereum’s price trajectory remains a topic of keen interest within the cryptocurrency community.