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- A triple bottom pattern suggests a potential breakout as ETH looks to test the $3,500 resistance.
- While exchange outflows and RSI levels were suggesting a bullish move, network growth remained flat.
Ethereum [ETH] Traders see a triple bottom pattern reminiscent of the 2021 rally forming in 2024, poised for a major breakout.
ETH was trading at $2,314 at press time, up 0.31% over the past 24 hours, stoking optimism that the fourth quarter could see some big gains.
Could a triple bottom trigger a bullish reversal?
Triple bottoms are a well-known pattern that often signals a bullish reversal, and in 2021, Ethereum followed a similar structure before embarking on a major rally.
If Ethereum maintains this trajectory, a breakout above $3,500 could further bolster investor confidence.
To confirm the bullish momentum, Ethereum needs to break out of a key resistance level, with the $2,800 level being the first major hurdle and a breakout above this could set up a test of $3,500.
Source: X
What about the strength of ETH?
Technical indicators point to a bright outlook for Ethereum: The Relative Strength Index (RSI) is at 45.63 at the time of writing, indicating that ETH is neither overbought nor oversold.
Bollinger Bands (BB) indicated that ETH was trading in a narrow range and could signal upcoming volatility.
A breakout above the upper band could trigger a strong uptrend, so it will be important to keep a close eye on these indicators over the next few days.
Source: TradingView
Are the exchange rates signaling an upswing?
Exchange flow data shows mixed signals but indicates a potential bullish move at the time of writing.
Inflows to the exchange increased by 0.82% over the 24 hour period, reaching 349.05K ETH at the time of writing, indicating selling pressure as traders move coins onto exchanges.
However, outflows from exchanges increased by 0.77% in 24 hours, reaching 328.83K ETH at press time, indicating that many investors are still keeping their coins away from exchanges.
If outflows continue to increase, it could signal less selling pressure and growing confidence in ETH’s upside potential.
Source: CryptoQuant
Network Growth: Is Ethereum Expanding?
Ethereum’s network growth has been relatively slow, with 27,181 new addresses added recently, resulting in a growth rate of 0.24% in the past 24 hours as of press time.
The neutral signal suggests that the Ethereum network is stable but is not seeing a surge in new user activity.
Source: Santiment
Ethereum [ETH] Price forecast 2024-2025
Will Q4 be a breakout?
Ethereum is at a critical juncture. Technical patterns such as triple bottoms, RSI and Bollinger Bands indicate a possible breakout, but network growth and mixed exchange flows suggest some caution.
With volatility expected, the fourth quarter will likely determine whether Ethereum can break through key resistance levels and regain the bullish momentum that drove its 2021 rally.
