Since the completion of Bitcoin's fourth halving on April 19th, Ethereum price has maintained a steady recovery, as evidenced by the formation of new highs and lows on the daily chart. Although the overall market is still limited by Ether growth, the coin price managed to recover from $2,870 to $3,335, marking a 17% growth. Analyzing the daily chart, we can see that the ETH price is approaching a pivotal point in the development of a descending wedge pattern.
Also read: Best time to buy long Bitcoin (BTC) and Ethereum (ETH): QCP Capital
If buyers break this resistance, Ethereum price will regain momentum.
The short-term outlook for Ethereum suggests a bearish trend, as evidenced by the price movement within the downtrend line of a descending wedge pattern. However, this chart setup is known for igniting bullish momentum and resuming a dominant bull market.
ETH price is up 2.16% intraday, indicating a bullish breakout from weekly resistance at $3,280. Holding this breakout will prompt buyers to retest the pattern's resistance trendline.
According to on-chain data analyzed by Lookonchain, prominent investor James Fickell has been actively accumulating Ethereum (ETH) while maintaining long positions in the ETH/BTC trading pair.
Lookonchain tracking revealed that Fickell owed 2,301 Wrapped Bitcoins (WBTC) worth approximately $119.75 million from decentralized finance platform Aave. This borrowed WBTC of his was traded for 41,947 ETH at an exchange ratio of 0.055, coinciding with the launch of the Bitcoin ETF on January 10th.
Additionally, Fickell allocated 35 million USDC to purchase 10,952 ETH at a price of $3,196 over the past three days. This large investment confirms the bullish sentiment towards Ethereum and indicates that buyers are likely to break the wedge pattern.
This potential breakout marks the end of the previous correction and allows the price to regain value above $4000.
technical indicators
- Relative strength index: The daily RSI slope has increased by more than 50%, indicating positive market sentiment for a return to the asset.
- BB indicator: A rising Bollinger Band lower bound strengthens buyers with additional support leading the recovery trend line.
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