Ethereum’s price has managed to stay above the $3,400 mark, indicating a possible surge in the near future, according to analyst Ali Martinez. In the past 24 hours, Ethereum’s price has risen by 2.9% to reach $3,485, accompanied by a significant increase in daily trading volume, which now stands at $9.7 billion.
Martinez’s predictions align with the recent price increase seen in Ethereum. He points out that the TD Sequential indicator has indicated a buy signal on Ethereum’s 3-day chart. This indicator helps identify potential price reversals and exhaustion of trends, suggesting a positive turn for ETH.
Martinez predicts that this could lead to a rebound, with one to four candlesticks moving upwards, indicating that the price of Ethereum may continue to rise in the coming days.
Recently, Ethereum attempted to rally but lacked the necessary bullish momentum to sustain the climb. It failed to hold above the $3,700 resistance level and started to decline, falling below the $3,550 support level and reaching a low of around $3,430.
Similar to Bitcoin, Ethereum is now showing signs of a breakout that could push its price above $4,100.
Technical analysis suggests that Ethereum’s price could surge further. A falling wedge pattern has formed, indicating a potential bullish reversal that may encourage optimistic investors to drive prices higher. Currently, the price is above both the 50-day and 200-day simple moving averages (SMAs), with bulls aiming to break out above the wedge pattern to initiate a rally.
The Relative Strength Index (RSI) shows signs of recovery, hovering around 49, just above the midpoint of 50. This suggests significant buying pressure. A surge in bullish momentum could strengthen the bulls’ position, confirming expectations of an imminent rally.
Meanwhile, the Moving Average Convergence Divergence (MACD) indicator is also bullish. The blue line has crossed above the orange signal line towards neutrality, indicating a shift in momentum from bearish to bullish. Additionally, positive histogram bars suggest momentum in price movement, further supporting the optimistic outlook.
With Ethereum’s price at a critical point, bulls are striving to maintain upward momentum and target the $4,100 mark. The presence of a falling wedge pattern reinforces bullish sentiment, with hopes of reaching Ethereum’s all-time high of $4,880.
However, if bears take advantage of any weakness near the upper boundary of the wedge, they could trigger a downside move towards the $3,450 support level, which aligns with the lower trendline of the wedge. Traders and investors should closely monitor these levels for potential changes in market sentiment and price movements.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The views expressed in this article are solely those of the author and do not reflect the opinions of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses incurred.