Ethereum (ETH) is expected to begin an upward trend again after experiencing a pullback. Below is the relevant analysis:
Technical Analysis
- Pattern Analysis: Recently, ETH has formed an ascending triangle pattern characterized by rising lows and flat resistance levels, successfully breaking through the key resistance level of $2,800, laying the foundation for a vertical rebound. Additionally, a potential head and shoulders pattern is forming on the daily chart, which, if confirmed, would suggest a bullish reversal.
- Key Position Analysis: Key support levels for ETH include $2,450 and $2,300, with resistance levels around $2,600 and $2,855. If ETH decisively breaks through $2,855 and maintains volume, it may signal the start of a new bullish trend.
- Technical Indicator Analysis: The Relative Strength Index (RSI) for ETH has clearly broken the downward trend line and is currently hovering in the neutral zone. The MACD indicates a potential shift towards bullish momentum. The current value of the weekly Stochastic RSI is 79, suggesting that market momentum remains strong and has not yet entered the extreme overbought zone, retaining upward momentum.
Market Analysis
- Market Sentiment and Capital Flow: The sustained demand for ETH in the market and the warming investor sentiment provide momentum for ETH's rise. For example, Trump's dovish stance on interest rates has prompted investors to seek high-yield assets, with ETH, as the second-largest cryptocurrency, becoming one of the preferred targets for capital inflows in its derivatives market.
- Derivatives Market Performance: The ETH derivatives market shows signs of recovery, with a slight increase in the 30-day futures premium, indicating market optimism for a future rebound.
- Ecosystem Development: The ongoing development of the ETH ecosystem, including the advancement of L2 scaling solutions, institutional recognition of Ethereum's staking mechanism, and the stable growth of applications such as DeFi and NFTs, provides medium to long-term support for Ethereum's price.
Future Trend Forecast
- Short-term Trend: If ETH can hold the key support level of $2,400, it is expected to lay the foundation for a new round of increases. After breaking through $2,800, expectations for $3,000 will quickly heat up.
- Long-term Trend: Considering U.S. stablecoin policy support, interest rate cut expectations, and ETH's technical upgrade roadmap, analysts generally believe that ETH prices are likely to break through the psychological barrier of $3,000 in the near future and challenge highs above $4,000 within the year.