Ethereum (ETH) Price Stalls Near $3400: Is A Surge Coming?

• ETH accumulation addresses surpass 20M, signaling strong confidence.
• A bullish inverted head and shoulder pattern is exhibited on the weekly chart, suggesting an upside ahead.

After trading sideways for a week, Ethereum (ETH) upheld support around the 50-day EMA mark. Furthermore, the Ethereum price has regained bullish momentum. During this consolidation, ETH formed an inverted head and shoulder pattern and was poised for an upsurge.

Other factors supporting ETH’s bullish outlook include strong network growth and whale accumulation in the coin. One more factor is the positive shift in the market sentiment.

When writing, the ETH price traded at $3401, noting a rise over 2.13%. Its market cap surged to $408.33 Billion and Total Value Locked (TVL) stood at $67.998 Billion.

Ethereum’s Accumulation Phase Marks Potential for Long-Term Gains

Although the overall market remains relatively pessimistic, there are signs that investors are getting more bullish. With this, holders of Ethereum accumulation addresses have held more than 20 million worth of ETH.

The trend for this accumulation is one of sharp and persistent upward growth. The latest spike to the upside indicates aggression in the buying action.

The actions appear to be with institutional investors and other long-term holders. Ethereum indicates the supply squeeze as tokens are accumulating in the accumulation wallets. This will result in fewer tokens being supplied to the market daily.

It could also heighten price pressure and bring down the available supply more in tandem with the general market. Even though the amount of ETH flowing into these long-term holdings has increased. This indicated that investors are confident in Ethereum’s long-term opportunity.

However, such an accumulation activity continues even as the Ethereum price fluctuates. This painted a picture of how the market view may differ from the strategic view.

A rise in holdings from one month to the other demonstrates a strong conviction in Ethereum’s position in the crypto economy. This happens as it grows in this regard, from smart contracts, among other uses, to decentralized finance (DeFi).

Such developments make Ethereum one of the most valuable assets for those preparing for the next giant trend direction.

However, data from Lookonchain shows that Cumberland has deposited over 16.201 ETH worth $55 Million to Coinbase. Despite the significant dump, ****the ETH price maintained resilience and noted an uptick of over 2% intraday.

Ethereum Forms Inverted Head and Shoulder Pattern: What’s Next?

On the weekly timeframe, Ethereum formed an inverted head and shoulder pattern. Furthermore, the token closed to complete the right shoulder. Once the pattern is completed, the Ethereum price could see a massive upswing and may aggressively breach the $4000 neckline.

An immediate breakout above the neckline, accompanied by a big volume, would confirm the bullish chart pattern. This may serve as a springboard for Ethereum to shoot higher.

Moreover, Javon Marks indicates that Ethereum has formed an ‘Adam & Eve’ pattern, which signals a bullish reversal. Per the pattern, the Ethereum price could reach $4800 in the short term.

Furthermore, the Open Interest (OI) has risen over 1.69% to $23.58 Billion. That indicated prolonged buildup activity. Also, the funding rate remained positive at 0.0092%, articulating significant demand for long contracts.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.