Ethereum price is setting the stage for a potential rally toward $4,000 after solidifying support around the $3,000 level. The cryptocurrency has seen increased buying activity in this range, alongside a bullish breakout and imminent technical indicators, suggesting further upward momentum. As Ethereum consolidates its position, market participants anticipate a continuation of this positive trend fueled by strong demand and on-chain dynamics.
Ethereum Forms a Golden Cross Amid Major Breakout, What’s Next?
Ethereum is approaching a “golden cross,” a technical pattern where the 50-day moving average crosses above the 200-day moving average. Historically, this pattern has been linked to strong price rallies, often exceeding 100%. Analysts are expecting this indicator to push ETH price toward the $4,000 mark.
According to price analysis, ETH price is breaking above the 50-day, 100-day, and 200-day EMAs. More so, the 24-hour ETH chart shows the 50-day EMA is trending upwards toward the 200-day EMA, indicating an imminent Golden Cross. Sustaining price above the 200-day EMA strengthens the bullish case.
Concurrently, investors are keeping track of key ETH indicators as market experts hint toward an ETH rally to $10K.
Source: TradingView
In addition, Ethereum has broken out of a bull flag pattern on the weekly chart, a development known to precede price rallies. This breakout positions the crypto to retest resistance at $3,700. Analysts Rekt Capital suggest that maintaining support above $3,200 will be critical for sustaining this momentum.
$ETH
Ethereum is currently breaking out from its short-term Bull Flag
Confirmed breakout would see ETH revisit the ~$3700 resistance above#ETH #Crypto #Ethereum pic.twitter.com/iBbUeYxmnM
— Rekt Capital (@rektcapital) November 21, 2024
Moreover, whale activity around Ethereum has significantly increased over the past week. An Ethereum whale wallet recently acquired 27,000 ETH, equivalent to $88.9 million, signaling confidence in the bullish outlook. This aligns with a broader trend of accumulating ETH within the $3,000 to $3,250 range. On-chain data from IntoTheBlock reveals that over 50% accumulation by large ETH holders.
Layer 2 Tokens Ride the Bullish Rally
In addition, the recent rally has positively impacted Layer 2 tokens, driving notable gains across this segment. According to reports, tokens such as OP, METIS, and ARB have experienced increases of 25%, 10.62%, and 14.5%, respectively, in the past 24 hours. These gains are attributed to the growing adoption of Layer 2 solutions that aim to enhance Ethereum’s scalability.
The enthusiasm surrounding Layer 2 technologies mirrors the optimism in the broader market. At press time, the cryptocurrency was trading at $3,321, up 7% in the last 24 hours. The cryptocurrency’s market cap reached $400 billion, with the 24-hour trading volume surging 60% to $46.26 billion.
With the imminent golden cross and continued bullish momentum, the crypto path toward $4,000 appears increasingly viable. Similarly, this aligns with an earlier ETH price prediction of $5000 this November.
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