Ethereum (ETH), the second-largest digital currency by market capitalization, is showing signs of a robust bullish breakout. This comes as on-chain data reveals a steady increase in whale accumulation, and a rare chart pattern signals potential growth.
As of Monday, Ethereum was trading at $2,545, a price it has been hovering around for the past few days. This price is slightly below its monthly high by about 7%. On-chain data, however, reveals signs that large investors anticipate a rebound in Ethereum’s price in the coming months. Specifically, the supply of Ethereum held by whales has seen a steady increase, with these addresses now holding 103.5 million ETH, up from 102 million on March 1. This represents an increase of nearly 1.5%, a bullish leading indicator.
On-chain data also indicates that Ethereum’s ecosystem is thriving. The total value locked (TVL) jumped by 26% in the last 30 days to over $132 billion. Meanwhile, the bridged TVL, which examines the value of assets locked in cross-bridge contracts, rose to over $408 billion, dwarfing the TVLs of other chains. For comparison, Solana (SOL) has a TVL of $22.48 billion, while BSC has $9.3 billion.
Additionally, Ethereum Exchange Traded Funds (ETFs) are experiencing inflows. Data from SoSoValue reveals that they have seen inflows in the last six days, bringing the cumulative inflows to $2.76 billion.
Technical analysis of Ethereum’s price reveals interesting findings as well. The daily chart shows that Ethereum has rallied from April’s low of $1,382 to its current price of $2,547. It has formed a bullish flag pattern, which is characterized by a strong vertical rally followed by a period of consolidation. Ethereum is currently trading between the 38.2% and 50% Fibonacci retracement levels.
A golden cross, a bullish signal, seems imminent as the 50-day and 200-day Weighted Moving Averages approach a crossover. Ethereum is also maintaining just above the key pivot level of the Murrey Math Lines tool, further bolstering the bullish structure. If Ethereum breaks above the 50% Fibonacci retracement level at $2,730, it would confirm the bullish breakout. In such a scenario, the next major target would be the psychological resistance at $3,000, an 18% gain from current levels.
In conclusion, while the volatility of the crypto market is always a factor to consider, the current on-chain data and technical analysis are painting a potentially bullish picture for Ethereum. However, investors should always do their due diligence and proceed with caution.
