Can Ethereum Price Hit New ATH After This Strong Pullback?

• ETH price has jumped by 9.77% yesterday (Nov 21).
• Trading volume increased by 50%, indicating a rise in capital inflow.

Ethereum’s (ETH) price has been bullish for the past few weeks. It has broken out from a consolidation zone and has smashed the 200-day EMA.

After a bullish trend, the Ethereum price witnessed a mild fall. This mild fall has become a strong pullback and reached the last swing high.

The current market sentiment was bullish. Also, the Bitcoin was at an all-time high (ATH). The ETH price was trading near a crucial level of $3,350, and a battle between buyers and sellers could be seen.

Can Buyers Lift ETH Price to $4K Mark Soon?

When writing, the Ethereum crypto traded at $3,382.27, slightly increasing by 0.75% over the past 24 hours. The market capitalization was $407.47 Billion, and the 24-hour trading volume was $51.65 Billion.

In a weekly time frame, the ETH price has been bullish and rising, following an ascending trendline. The token has managed to defend the trendline and has gained bullish momentum.

The Ethereum price has departed from the buying zone. That was on the trendline. Additionally, it is expected to record a new high according to technical analysis.

Suppose the ETH price dominates the $3,350 mark; it could generate bullish momentum. Buyers may ride the trend once the price is over this level. It is expected to hit the $4K mark amid this bull run.

On the other hand, if the price is resistant to $3,350, it could display weakness. Selling pressure can be seen if the crypto asset price loses the 20-day EMA. However, a bearish trend can be initiated if the price starts trading below the $2.2K mark.

Turning to the technical indicators, the Ethereum price has defended the 20-day EMA and has triggered a pullback. The RSI was performing a golden crossover with the RSI-based moving average. Most of the technical indicators were in favor of bullish forecasts.

ETF Inflows signal rekindled Institutional Interest in Ethereum

The popularity of Ethereum ETFs reflected renewed institutional interest in the cryptocurrency. Last week’s Ethereum ETF inflows climbed by $515 Million over the $154 Million recorded the week before.

Since their July launch in the US, these weekly inflows have been the strongest. Over the last two weeks, the total net assets of Ethereum ETFs have increased from $6.94 Billion to $9.15 Billion.

There are still issues, though, as $178 Million has been pulled out of the Grayscale Ethereum Trust. That was lowering sentiment generally.

Despite this, interest in the Ethereum ETF is rising, suggesting it may become more widely used. The technical structure and historical patterns indicated its upcoming significant market cycle. With this, Ethereum appears poised to make substantial gains.

Future Prospect of the Ethereum Price

The Ethereum price has demonstrated strong bullish potential following a recent pullback, with a notable increase in trading volume. This surge in volume signaled heightened market interest.

The price currently sits near the crucial $3,350 level. Additionally, maintaining its position above this mark could pave the way for upward momentum toward the $4,000.

However, the market remains cautious; resistance at $3,350 could lead to weakness. Moreover, any significant drop below the $2,200 threshold may indicate a bearish trend.

Overall, the technical indicators were leaning towards optimism. This suggests that Ethereum has a solid chance of breaking new ground.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.