Ever since Bitcoin’s fourth halving event, Ethereum (ETH) has been making a steady recovery, evident from the formation of new high-low patterns on daily charts. So, what’s the current situation for Ethereum, the leading smart contract platform? Let’s take a look at the latest data.
Short-Term Analysis of Ethereum
While the overall growth of the cryptocurrency market remains limited, Ethereum’s price has seen a 17% increase, rising from $2,870 to $3,335. A closer analysis of the daily chart reveals that the ETH price is approaching a crucial point with the emergence of a falling wedge pattern. Based on the price movement within the descending trend line of the falling wedge, the short-term outlook for Ethereum suggests a downtrend.
However, it’s important to note that this chart setup is known for gathering bullish momentum and sustaining rallies. With an intraday gain of 2.16%, the ETH price is showing an upward trend from the weekly resistance level of $3,280. This breakout is encouraging buyers to once again challenge the resistance trend line of the pattern.
Analytical Reports on ETH
According to on-chain data analyzed by Lookonchain, prominent investor James Fickel is actively accumulating Ethereum (ETH) while maintaining his long position in the ETH/BTC trading pair. Lookonchain’s tracking reveals that Fickel borrowed approximately $119.75 million worth of 2,301 Wrapped Bitcoin (WBTC) from the decentralized finance platform Aave.
On January 10, Fickel traded this borrowed WBTC for 41,947 ETH at an exchange rate of 0.055, coinciding with the launch of a Bitcoin ETF. Furthermore, Fickel has allocated $35 million USDC to purchase 10,952 ETH at $3,196 each over the past three days. This substantial investment could potentially indicate a bullish trend for Ethereum, with a higher likelihood of breaking the wedge pattern. If this potential breakout occurs, it could mark the end of the previous correction and allow the price to surpass $4,000.
Disclaimer:
It’s important to note that the information provided in this article is not meant as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and should conduct their own research before making any investment decisions.