The second-largest cryptocurrency saw significant volatility over the past week, eventually falling below $2,500.
Despite this slight decline, many analysts still expect a strong recovery, with targets up to $3,000 and above.
A big move coming up?
Ethereum (ETH) has fallen to around $2,440 (per CoinGecko), but according to Ali Martinez, it remains contained within its 4-hour channel. The analyst said the price has reached the lower limit of the structure and it is now watching a potential bounce towards the mid-range and possibly the upper limit near $2,570.
Martinez described this as a key level, predicting that a strong 4-hour close above (supported by volume) could confirm a breakout and set the stage for a jump towards $2,700 and even $3,000.
BLADE and Mikybull Crypto also spoke. spotted a double bottom formation on the ETH price chart and predicted that the asset is preparing for “the biggest move of the cycle,” anticipating a blowout beyond $10,000 next year.
The last maintained that Ethereum appears “extremely bullish” in its current state, arguing that investors would not want to miss the big run about to unfold.
The decrease in the amount of ETH stored on crypto exchanges reinforces the positive outlook. Earlier this week, this figure fell to a new ten-year low of around 14.6 million coins, suggesting that investors are continuing to move from centralized platforms to self-custody solutions. This, in turn, reduces immediate selling pressure.
Meanwhile, whales continue to accumulate Ethereum. Just a few days ago, BitMine announced another ETH acquisition worth approximately $660 million, increasing its total holdings to 5,956,378 units and bringing it closer to its goal of controlling 5% of the asset’s circulating supply. Additionally, Lookonchain revealed that a mysterious market participant exchanged 512 WBTC ($38.64 million) and 354 cbBTC ($26.73 million) for 26,924 ETH ($64.57 million).
The elements concerned
On the other hand, ETH’s relative strength index (RSI) suggests that bearish momentum could persist in the near term. The ratio climbed to 76, signaling that the asset has entered overbought territory, which typically signals an impending pullback.
Declining institutional interest is also a concern. Spot ETH ETFs have attracted substantial capital over the past few weeks, but over the past two days there have been massive outflows, suggesting that hedge funds, pension funds, and other conservative investors have reduced their exposure to the asset.
The article Ethereum’s Path to $3,000: All Eyes on This Level now appears first on CryptoPotato.