Ethereum (ETH) appears to be on the cusp of a significant rally as recent analyses suggest the cryptocurrency has emerged from its prolonged downturn. Glassnode co-founder Negentropic posits that Ethereum is quietly gearing up for its next upward movement. This follows a notable recovery in the broader market, particularly as Bitcoin (BTC) has surged past $90,000 following previous declines.
Last night, Ethereum experienced a substantial price increase, reaching $3,400, a level not seen since November 13th. The recent uptick has fueled bullish sentiments among traders, with some analysts asserting that the downtrend for ETH has come to an end. Negentropic highlighted that ETH has crossed above its 50-day moving average, suggesting a trend reversal is underway.
In his analysis, he noted that such trend breaks have historically preceded strong recoveries in ETH. The resurgence in Ethereum”s dominance, coupled with renewed upward momentum, is reminiscent of previous market rallies. “Ethereum is quietly preparing for something big,” Negentropic stated, emphasizing that the reclaiming of the 50-day simple moving average (50SMA) signals a positive shift in momentum.
Supporting Negentropic”s outlook, analyst Merlijn The Trader identified the formation of a significant inverse head and shoulders pattern on Ethereum”s long-term weekly chart, describing it as “the most bullish structure in the cryptocurrency market.” This pattern has historically indicated potential for substantial price movements.
Furthermore, analyst Rekt Capital pointed out that Ethereum is currently situated within a critical demand zone, showcasing strength in its market performance. Rekt Capital noted that if ETH manages to close weekly trading above the CME futures gap level, it could pave the way for continued upward momentum.
