Ethereum Price Prediction: The cryptocurrency market witnessed high volatility this week, evidenced by the narrow consolidation in leading digital assets Bitcoin and Ethereum. The neutral candle confirmation formation with long wicks reflects no dominance from buyers or sellers toward these assets. However, a look at 4 hours shows that the ETH price shows a short sideways trend in developing a bullish reversal pattern called an inverted head and shoulder pattern.
Also Read: Surging Ethereum Whale Transactions Hint At Upcoming ETH Price Rally
Whale Activity Signals Confidence as Ethereum Tests $3700 Resistance
Ethereum, the second-largest cryptocurrency by market cap rebounded from its last correction in March’s fourth week as price downfall halted at $3060. This horizontal level coincides with the 38.2% Fibonacci retracement level indicating a healthy retracement phase for Ether to recuperate its bullish momentum.
Furthermore, a positive turnaround uplifted the coin’s market value by 20% to challenge resistance at $3700. Amid the current market uncertainty, the ETH price is wavering below this overhead resistance to currently trade at $3530.
However, this consolidation in the 4-hour chart revealed the formation of a bullish reversal pattern called inverted head and shoulder. This chart setup commonly spotted at market bottoms indicates a renewed buying interest among traders.
Moreover, In a recent observation by crypto trader Alicharts, there’s a notable rise in Ethereum whale transactions, suggesting bullish sentiment among key investors despite the cryptocurrency’s recent price dips.
This uptick in activity from large stakeholders typically indicates a positive outlook on Ethereum’s value, hinting at a possible price recovery ahead.
Despite the #Ethereum price correction seen over the past few weeks, $ETH whale transactions are on the rise — a bullish indicator for future #ETH price movements! pic.twitter.com/urMBA8ofAS
— Ali (@ali_charts) March 29, 2024
Ethereum Bulls Watch for $3700 Signal to Extend Rally
The Ethereum price must breach the $3700 resistance with a 4-hour candle closing for the head and shoulder pattern to hold true. Doing so will provide buyers with suitable support to prolong its recovery trend to $4300.
On a contrary note, a breakdown below the support at $3460 will invalidate the bullish thesis.
Technical Indicator
- Exponential Moving Average: The ETH price above the key EMAs(20, 50, 100, and 200) indicates the near-term trend as bullish.
- Relative Strength Index: The daily RSI slope wavering around 50% indicates an uncertain market sentiment.
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