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.
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.
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.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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