Ethereum is nearing a $2,800 breakout to test the $3,000 neckline. With increasing bullish triggers, is ETH ready to surpass $3,000?
Bitcoin bouncing back to the $98,000 mark has boosted the trend momentum in Ethereum. The biggest altcoin in the market has risen to $2,755 with an intraday recovery of 0.61%.
This marks its third consecutive positive day in an attempt to challenge and close above the $2,800 mark. With the short-term recovery gradually gaining momentum and the short-term technicals hinting at a trend continuation, will Ethereum reclaim the $3,000 mark? Let’s find out.
Ethereum Price Nears $2,800 Breakout
In the daily price chart, Ethereum has declined from the swing high of $4,109 to retest the 23.60% Fibonacci level at $2,568.
With multiple lower price rejections, the ETH price trend now forms a consolidation range with the overhead ceiling at the 38.20% Fibonacci level. This crucial resistance is priced at $2,807.
Now, ETH’s price trend has formed three consecutive positive candles, marking a triple white soldiers pattern. This increases the possibility of a breakout rally to challenge the 50% Fibonacci level near the $3,000 psychological mark.
This will likely create a rounding bottom pattern with the 50% Fibonacci level acting as a neckline.
Supporting the chances of a bullish recovery, the daily RSI line has bounced off from the oversold boundary level and is nearing the halfway line. This marks a significant shift in trend momentum.
Along with the RSI, overall technical signals are bullish, with buy signals appearing in the hourly and 4-hour price charts. Although the moving averages still indicate a sell signal on the daily chart, they show a strong buy on the hourly and 4-hour time frames.
The oscillators remain neutral overall, with a buy signal present in the 4-hour price chart. In conclusion, the short-term price trend indicates a buying opportunity, provided the uptrend surpasses the 38.20% Fibonacci level.
Ethereum Whale Returns After 500 Days
Amid the possibility of a new rally, Ethereum whales are returning to the market. A recent tweet from LookOnChain reveals that a dominant whale has returned to buy more Ethereum after nearly 500 days of inactivity.
The entity withdrew 4,700 ETH, worth nearly $13 million, from exchanges. The transfer of Ethereum to a new hot wallet reflects the whale’s confidence in the upcoming ETH price trend.
Ethereum Network Activity on the Rise
Meanwhile, Ethereum’s network activity is also improving significantly. A recent post by crypto analyst Ali Martinez shows that the number of new addresses on the Ethereum network has been rising steadily over the past week.
Daily active addresses have increased by 12.10% in the last week, surpassing 200,000.
Institutional Demand Takes a Hit
Despite the rising bullish signals, institutional investments remain low. On February 20, the daily net flow for U.S. Ethereum spot ETFs was negative $13.09 million.
The key sellers were Grayscale and Fidelity. The Grayscale Ethereum Trust sold $10.34 million in Ethereum, while Fidelity offloaded $2.75 million.
Ethereum Price Targets: Can Bulls Push Beyond $3,000?
As positive signs support the possibility of a new bull run for Ethereum, the Fibonacci levels set new price targets.
If the uptrend surpasses the $3,000 mark, bullish targets extend from $3,241 to $3,591. On the flip side, the crucial support remains at $2,568.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
