Ethereum Price Primed for a Rally: Key Bullish Pattern in Play

• Ethereum forms an inverted head and shoulders pattern and is looking for a $3500 breakout.
• Ethereum ETFs see a $166.6M net inflow, the highest this month.

Ethereum (ETH) coin has faced a challenging week, with price facing rejection around the $3500 hurdle multiple times. With the Bitcoin price surpassing $100,000, speculators predict the Ethereum price will follow suit and may shatter the $3500 barrier.

Besides the anticipation, a key bullish pattern, an inverted head and shoulders pattern, was in play. Furthermore, the ETH price could see a massive breakout rally soon.

The Ethereum price was trading at $3306 at press time, noting a decline of over 2.89% in the past 24 hours. Its market cap stood at $398.69 Billion, and the trading volume dropped by over 19%.

Ethereum’s Reveals Growing Bullish Momentum: Here’s the Key Insights

The Ethereum price chart exhibited a textbook inverted head and shoulders pattern. That pointed towards a bullish outlook.

According to historical data, the Ethereum price remained in the $2800-$2900 level for almost 37 days in mid-April. This bound occurred before a significant climb.

As highlighted by Ali Martinez, Ethereum may repeat the same. This could happen as the pattern’s right shoulder was in play, hinting at possible upward movement ahead.

If the ETH price breaches the $3500 hurdle, it could rise toward $3800. Along with the bullish chart setup, the heightened investor confidence and renewed demand could fuel the rise.

Moving ahead, the Ethereum crypto may experience a significant bullish trend ahead. However, this bullish thesis was invalidated if the immediate support level of $3150 was breached.

Whale Activity Reflects Underlying Market Robustness

Amidst the Ethereum price consolidation around $3400, a whale seized an opportunity and made a notable transaction.

Blockchain transaction tracker Whale Alert reported on X that a whale transferred 21,314 ETH worth $73.88 Million. This transaction occurred from Kraken and went to an unknown wallet.

The whale might have withdrawn these significant holdings from the exchange. That was likely due to possible upward movement and bullish market sentiment.

What are the On-Chain Signals Telling Us?

On-chain data from IntotheBlock adds weight to the bullish outlook for Ethereum. The Net Network growth surged over 0.25%, implying increased active users. At the same time, 72% of investors were sitting on profits, reinforcing the bullish sentiment.

Moreover, the new addresses have surged over 8.65% replicating the rising demand for the network. Ethereum saw massive inflows this month, with $166.6 million in net asset flows.

This demonstrated that the Ethereum price increase to $3400 coincided with a boost in inflows when the market needed it.

Moreover, the flows into Ethereum ETFs indicate that Ethereum can withstand market volatility. This is because, with institutional backing, Ethereum offers both speculation and long-term investment. That helps drive the constant price increase.

Futures Market Data Outlook

Data from Coinglass revealed that the Open Interest (OI) has risen over 1.24% amid a price drop of over 2.89%. This conveyed a short buildup activity in the past 24 hours.

However, the long/short ratio across exchanges signaled mixed cues as equality was somehow there. Around 49% of long contracts, compared to 50% of shorts, displayed indecisiveness among traders.

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.