Key Insights:
- Ethereum’s falling wedge pattern signals a possible breakout, with price aiming toward the $5,000 level.
- ETH holds key $2,800 support with resistance at $3,300 and $3,900 may follow if momentum continues.
- Spot ETF sees $79M outflows, ending five-day inflow streak as institutional demand shows short-term weakness.
Ethereum (ETH) is showing a potential bullish pattern that has caught the attention of traders. A falling wedge has formed on the daily chart, and the price has moved up over 9% in the past 24 hours. Market watchers are now closely monitoring the next move.
Price Pattern Points Toward Possible Breakout
Technical analysts have noted the appearance of a falling wedge formation, often seen as a bullish setup. If Ethereum breaks out above this pattern, analysts suggest it could lead the price to a higher level.
According to Clifton Fx, stated that in the case of an upside breakout, “$ETH could rally toward the $5k area.”
ETH Possible Breakout | Source: XThis setup follows weeks of price pressure that brought ETH down to key support zones. While past attempts at rallies faced resistance, the current move shows stronger momentum. Traders are watching the breakout level to confirm further upside.
Key Support and Resistance Levels in Play
At the same time, Ethereum remains near a key support level of $2,800. Based on CryptosRus, this level is one of the biggest support zones on the chart. A close above this line could open room for a move to $3,300 and possibly $3,900. But a drop below $2,800 may send the price toward $2,500 and then $2,300.
Market sentiment is mixed, as leverage remains high on Binance. “Leverage on Binance is at an ALL-TIME HIGH (0.57),” according to CryptosRus.
This makes the market fragile and increases the chance of liquidations. However, open interest has dropped to $6.6 billion, suggesting that some excess has already been cleared from the market.
ETF outflows suggest reduced institutional demand before the breakout.
In another development, Ethereum’s spot ETF saw $79 million in outflows. This broke a five-day streak of inflows. Jeet Shah shared that this could point to lower institutional buying in the short term.
Even though this could raise questions about short-term sentiment, ETH’s price has still managed to rise. The move higher has brought renewed attention from both retail and professional traders. As of press time ETH price stands at $3,077.84, with 24-hour trading volume exceeding $28 billion.
This increase in volume comes as the price approaches a key technical level. Many traders are watching for a clear breakout to confirm the direction. Ethereum’s current setup remains at a crucial point. A breakout from the falling wedge could create strong upside momentum.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Source: https://coincu.com/analysis/bullish-on-ethereum-soaring-toward-5k/
