Here’s why Ethereum price is preparing a monster move
Ethereum’s price has pulled back in the past few days, moving from the year-to-date high of $4,945 to the current $4,335.
- Ethereum price could be on the cusp of a strong bullish breakout this month.
- It is attempting to retest an important support level on the weekly chart.
- Ethereum has strong fundamentals, including growing market share in key industries.
Ethereum (ETH) token remains about 210% above its lowest point this year. Still, technical analysis points to an eventual rebound while spot ETH ETF inflows have risen.
Ethereum price technicals points to a rebound
The weekly chart shows that ETH’s price bottomed at $1,385 in April and then rebounded to a record high of $4,945 in August. The price recently crossed the important resistance level at $4,100, the highest point in March and December last year.
In most cases, an asset tends to have a break-and-retest pattern, where it drops and retests an important support level. In this case, the token could be attempting to retest support at $4,100, which would lead to a strong bullish breakout.
The initial target will be $4,946, its all-time high, followed by the psychological point at $5,000. A move above that level would point to more gains, potentially to the extreme overshoot level of the Murrey Math Lines at $6,250, which is about 45% above the current level.
The bullish ETH price forecast will become invalid if the token plunges below the strong pivot reverse level at $3,750.
ETH has bullish fundamentals
Ethereum’s price has some bullish fundamentals, which could help it recover in the near term.
The most notable one is Ethereum’s dominant role in the decentralized finance industry, where its total value locked jumped to a record high of over $200 billion, much higher than other top chains.
Ethereum continues to gain market share in the stablecoin industry, where its supply jumped by 12% to $157 billion. The number of transactions soared by 14% to 22.7 million, while the adjusted transaction volume rose by 38% to $948 billion. These numbers will likely continue rising, bringing in more revenue to the network.
Ethereum ETFs are still doing well despite the recent outflows. They have had cumulative inflows of over $12 billion, with BlackRock’s ETHA having over $16 billion in assets.
The derivatives market also points to resilient demand, with futures open interest rising to over $58 billion and the funding rate remaining positive.
