At the time of writing, Ethereum (ETH) price is showing a sharp decline, but a bullish pattern has actually been confirmed.
Buoyed by market conditions, the second-largest cryptocurrency on the planet could reach $4,000.
Ethereum investors remain bullish
Ethereum price fell to $3,000 in the past 24 hours, which proved to be an important test of the upper trend line of the descending wedge. The potential for altcoins to rise is supported by the fact that the optimism of ETH holders is still alive.
ETH holders still retain significant gains, as evidenced by the Net Unrealized Gain and Loss (NUPL) metric. This inspires optimism about their rise, standing in the same sentimental zone.
Historically, ETH price has typically risen more than usual when it is in this zone. We expect the same to happen this time as well.
Meanwhile, Ethereum whales are slowing asset movement. Overall, total daily trading volume on Tuesday ranged from $11.05 billion to $5.09 billion.
In general, a whale move is considered bearish as it could indicate a correction. However, given the low price of ETH, the activity suggests optimism.
ETH Price Prediction: Possibility of Reversal
Ethereum price $3,000 holds the $2,991 price point as a support floor moving within a descending wedge. This bullish chart pattern is characterized by a converging trendline with lower highs and lower lows. This indicates that the trend may reverse when price breaks out of the wedge formation to the upside.
According to this pattern, the target amount for ETH is $4,000, which would represent a 27% price increase. Practically speaking, it is unlikely that Ethereum price will reach $4,000 next month. However, a breakout from this pattern could send the price up to $3,582.
This represents a 13.6% increase in ETH and will encourage further investor participation.
Read more: Ethereum (ETH) Price Prediction 2024 / 2025 / 2030
On the other hand, if Ethereum price breaks below the $2,991 support floor, it could fall to the lower trendline at $2,894. Losing this support floor would invalidate the bullish theory and ETH could fall further below $2,800.
Disclaimer
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