Ethereum Price Prediction: The recent volatility in the crypto market takes a bullish turn this week as market sentiments show optimism for the nearing deadline of the U.S. Securities and Exchange Commission’s (SEC) decision to spot Bitcoin ETF Thus, the second largest cryptocurrency Ethereum(ETH) has been rising for the past three days, reclaiming the recently lost support of channel pattern and 20-day EMAs. Will this counterattack push the Ether price to $2500?
Also Read: Ethereum (ETH) Price Eyeing Rally to $2,700 Amid Strong Exchange Outflows
Here’s Why the Next Leap Could Push ETH to $2500
- The ETH Price reentering the channel pattern should offer buyers with additional support to rally.
- A healthy retracement in ETH price hints a strong bounce is likely
- The intraday trading volume in Ether is $16.4 Billion, indicating a 22% gain.
Ethereum price prediction| TradingView Chart
The last ten weeks’ recovery in Ethereum price can be traced using a rising channel pattern. The lower trendline of this channel offered strong pullback support to buyers, assisting them in prolonging the recovery trendline.
However, amid the third week of sell-off in the crypto market, the ETH price gave a bearish breakdown from the pattern’s lower support. This lost surge was expected to surge selling pressure and trigger an aggressive correction.
However, the buyers made a counterattack with a higher volume and reentered the channel pattern. With an intraday gain of 4.5%, the ETH price is now trading at $2341 and marked the prior breakdown as a bear trap.
Thus, the traders with sellers with tight stop loss may face forced liquidation and pour additional buying orders into the market. If the coin price manages to show sustainability above the reclaimed support, the buyers may drive a 10% rally to revisit the upper trendline near $2500.
Funding Rates Surge Signals Confidence in a Climb to $2,500
ETH OI-Weighted Funding Rate: Coinglass
The recent upward trend in Ethereum has been accompanied by a noteworthy increase in Ethereum Funding Rates, indicating a widespread expectation among traders for further gains, with a target of $2,500 in sight. Data from Coinglass, a prominent tracker of cryptocurrency derivatives, shows that the ETH Funding Rates surged to an impressive 0.045% last Friday. This increase in funding rates signals that traders are leaning bullish on the asset, willing to pay a premium to hold long positions. This optimistic sentiment can create a self-reinforcing effect, as the higher funding rates may attract more traders to enter long positions, expecting the price to climb
- Bollinger Band: The narrow range in the Bollinger Band indicator reflects increasing volatility in the market.
- Average Directional Index: The daily ADX slope at 24% hints the buyers have enough steam to lead a further rally.
