Ethereum Exhibits Bullish Trend Amidst Bitcoin Volatility
Ethereum, the second-largest cryptocurrency, has been experiencing a significant bullish trend since mid-January. This coincided with the approval of the Spot Bitcoin ETF, which contributed to Ethereum’s price surge. Meanwhile, Bitcoin has displayed continued volatility during this period. In December 2023, there was a noticeable increase in whale accumulation for Ethereum, indicating that smart money investors preferred Ethereum over Bitcoin.
Now, the question arises: Will Bitcoin continue to rise as investors shift their focus to an Ethereum ETF?
Ethereum Price Shows Strength for Prolonged Recovery
- The ETH price may continue its recovery as long as the expanding channel remains intact.
- If the coin price falls, it may find support at $2430 and $2300.
- The intraday trading volume in Ether has gained 10.3%.
The Ethereum coin has been on a bullish trajectory for the past four months, with a growth rate of 77%. The daily time frame chart shows the formation of an expanding channel, indicating increasing volatility in the asset. The market participants have taken note of this pattern structure, as the coin price has rebounded multiple times from both trendlines. If the current downturn continues, the ETH value could drop further to around $2300.
Insights from on-chain analytics firm Santiment reveal that Ethereum’s dominance over Bitcoin has increased by 22.4% in just one week. The network is experiencing rapid growth in new ETH addresses, indicating a positive trend. Additionally, Ethereum’s presence in exchange supplies is decreasing, which further supports a potential rebound in its price.
ETH/BTC Pair Rebounds From Crucial Support
According to respected analyst Michaël van de Poppe, Ethereum is showing signs of a rebound and a possible upcoming uptrend. To confirm this trend, Ethereum needs to surpass the 0.06 BTC level. The observation of a weekly bullish divergence further strengthens the case for Ethereum’s increasing momentum.
- Exponential Moving Average (EMA): The ETH price remains above the daily EMAs(100 and 200), indicating a bullish trend.
- Relative Strength Index (RSI): The daily RSI is above 50%, suggesting that buyers have the upper hand.
Hot Take: Ethereum’s Bullish Trend Continues Despite Market Downturn
Ethereum has demonstrated its strength and resilience during the recent market downturn. Despite the volatility in the cryptocurrency market, Ethereum has maintained its bullish trend and shown promising signs of recovery. With increasing adoption and positive on-chain analytics, Ethereum’s price is projected to rebound and potentially reach new highs. As investors shift their focus from Bitcoin to an Ethereum ETF, it will be interesting to see how this impacts the market dynamics and further drives Ethereum’s growth. Keep an eye on Ethereum as it continues to make waves in the crypto space.
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