The overall market has experienced a significant price drop in the past few days for all major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Amidst this market drop, Ethereum (ETH), the world’s second-largest cryptocurrency, has formed a bullish price action pattern on the 4-hour timeframe.
Ethereum’s Ascending Triangle Pattern
Over the past week, ETH consolidated within a tight range between $2,340 and $2,700. During this period, ETH formed a bullish ascending triangle pattern at the crucial support level.
ETH Price Prediction
After this formation of a bullish price action pattern, an expert suggests a bullish outlook for ETH. However, it is trading below the 200 Exponential Moving Average (EMA) on both 4-hours and daily timeframes, indicating a bearish trend.
If ETH breaks out of the bullish ascending triangle pattern in 4-hours time frame and closes a candle above the $2,751 level, there are high chances that it can rise 12% to reach the $3,100 level in the coming days. This level is close to the 200 EMA, which is acting as a strong resistance for ETH.
However, the current bearish market sentiment may make it difficult for ETH to break through this resistance level of the ascending triangle pattern. Moreover, bearish market sentiment and continued consolidation continue to make investors and institutions accumulate tokens at lower levels.
66% of ETH holders are profitable
In addition to this technical analysis, on-chain analytics firm IntoTheBlock recently posted a message on X (formerly Twitter) stating that nearly 66% of ETH holders are currently profitable. This message on X (formerly Twitter) has received a tremendous amount of attention from the crypto community. Furthermore, the last time such profitability was observed was in October 2023, when ETH was trading around the $1,800 level.
At the time of writing, ETH is trading around the $2,630 level and has remained stable over the past 24 hours. During the same period, it has also reached the $2,700 level. This stability, combined with the bullish price action pattern, has led to a significant 95% increase in trading volume.
