Ethereum Price Analysis: Falling Wedge Pattern and Whales’ Accumulation Signal Bullish Outlook
The cryptocurrency market has been buzzing with excitement as Ethereum, the second largest cryptocurrency by market cap, rebounds from a recent correction. Following the completion of the Bitcoin Halving last Friday, the market has seen a modest upswing, with Bitcoin reaching $37000 and altcoins entering a relief rally.
Ethereum, in particular, has shown strong resilience, bouncing back from the 38.2% Fibonacci retracement level and setting the stage for a higher rally. The ETH price correction recently bottomed out at $2875 before surging by 12.87% in just five days to reach $3236.
Technical analysis reveals that Ethereum is developing a falling wedge pattern, a bullish signal that often precedes a significant rally. In addition, on-chain data shows a notable increase in Ethereum accumulation by whales, indicating a bullish sentiment in the market.
Notable investors, including wallets associated with Justin Sun, have been actively accumulating ETH, with significant withdrawals and purchases being made. This accumulation by smart money traders despite the correction trend suggests confidence in the continuation of the rally.
With the ETH price poised to break the wedge pattern on the upside, analysts predict a potential rally to a high of $4090. The daily Relative Strength Index (RSI) slope rising to 50% and the Bollinger Bands indicator showing downticks in the lower boundary further support this bullish outlook.
As the cryptocurrency market continues to show signs of recovery and renewed bullish momentum, all eyes are on Ethereum as it gears up for a potential surge in price. Stay tuned for more updates on this exciting development in the world of digital assets.
