While Bitcoin’s [BTC] price remained relatively dormant in the last few days, Ethereum [ETH] gained momentum. In fact, the king of altcoins’ price went above a critical level, which might allow ETH to push its price to new highs in the coming days.
Ethereum to touch $3,200?
CoinMarketCap’s data revealed that while BTC’s price action went sideways, ETH’s value surged by more than 7% in the last seven days. At the time of writing, ETH was trading at $2,546.38 with a market capitalization of over $306 billion.
Meanwhile, ETH’s price broke above a bullish pennant pattern. For starters, a technical trading pattern known as a bullish pennant signals the impending continuation of a significant upward price rise.
The analysis posted by a crypto influencer suggested that the possibility of ETH touching $3,200 was high as its value went above the bull pattern.
Here is what the metrics suggest
Therefore, to check whether breaking above a bullish pattern would be enough for ETH to touch $3,000, AMBCrypto had a closer look at its metrics. Our analysis revealed that buying pressure on the token was increasing.
This was evident from the fact that ETH’s supply on the exchanges graph went under its supply outside of the exchanges graph, meaning that investors were accumulating more ETH.
Despite the hike in buying pressure, it was surprising to see a drop in whale transaction counts over the last seven days.
Ethereum’s derivatives metrics was then checked to see what they had to suggest.
Coinglass’ data revealed that its open interest increased along with its price. Whenever open interest rises, it increases the chances of a trend continuation.
Hence, it hinted that the possibility of ETH maintaining its gaining spree was high, in turn making the possibility of ETH touching $3,000 viable.
More bullish indicators were revealed when we took a look at Ethereum’s daily chart. For example, the MACD displayed a clear bullish advantage in the market.
Its Chaikin Money Flow (CMF) also registered a sharp uptick, indicating that ETH’s price could go up further.
However, the Relative Strength Index (RSI) looked concerning as it dropped. This can restrict ETH’s price from touching $3,000 in the near term.
Source : AMBCrypto by Dipayan Mitra / Jan 18, 2024