Ethereum [ETH], at the time of writing, looked ready for a breakout past the $5,000-level.
Technically, ETH has printed its third higher low this month. The first leg off $3,500 gained by 35%, and the second bounced off $4,000, before tagging the $4,900 all-time high.
On 25 August, the altcoin dipped by 8.8% to $4,300, but a quick 5% reclaim showed the market’s buyers defending themselves. The bullish ETH/BTC ratio appeared to back the move, setting up a solid base here for the next leg up.
However, the key divergence seemed to be the RSI.
Unlike the last two dips, it hasn’t hit overbought territory above 85 yet. It didn’t happen even when ETH topped $4,900. This implied the momentum hasn’t exhausted itself yet, leaving room for a cleaner push towards price discovery.
Simply put, bulls might be carving out a third higher low at $4,300. If that level holds, it could act as a launchpad for a $5k breakout and a 20%+ swing – Totally doable given the last two rebounds.
Spot accumulation is key though, and Ethereum’s smart money is clearly playing it.
Over the past week, ETH has seen $900 million net inflows via Spot ETFs. This, at a price of $4,780, works out to roughly 188k ETH bought. At the same time, fresh issuance added just 17.8k ETH.
In short, Ethereum may be on track to test a new ATH before Q3 ends.
With underheated technicals, a clean bullish structure, and a strong bid wall around $4,300, the press time setup appeared to point to a breakout past $5,000. This would give the bulls room for a smooth run into price discovery.
#BTCPrediction $ETH