Market Recovery and Analyst Optimism
Bitcoin (BTC) has risen above $90,000 after experiencing sharp declines, while Ethereum, the largest altcoin, has also seen a significant recovery.
At this point, Ethereum (ETH) surged to $3,400 last night, marking its highest level since November 13th, approximately four weeks later.
While bullish expectations for ETH still persist, one analyst argued that the downtrend for ETH has ended.
On-Chain Analysis Points to Impending Rally
Glassnode's co-founder, Negentropic X, an on-chain analytics platform, argued that ETH is quietly preparing for its next surge on the platform.
According to the analyst, ETH has risen above its 50-day moving average. Following this, he analyzed that a trend break occurred in Ethereum and that the upward momentum continues.
This situation has occurred twice before, followed by a strong recovery. At this point, the analyst likened the recovery in Ethereum dominance and renewed upward momentum to previous strong rallies.
The dominance is reclaiming the 50SMA, the trend break is behind us, and momentum is pushing upwards. This pattern has gained even more momentum the last two times it has emerged.
"Ethereum is quietly preparing for something big."
The downward window for ETH and altcoins has closed.
Multiple Analysts Predict Strong Upward Momentum
Besides Negentropic, analyst Merlijn The Trader also made similar predictions for Ethereum. Referring to the formation of a large inverse head and shoulders pattern on the long-term weekly timeframe, the analyst stated, “The most bullish structure in the cryptocurrency market is forming in ETH.”
Lastly, analyst Rekt Capital stated that Ethereum is in a critical demand zone and showing strength. They added that if the weekly close for ETH is above the CME futures gap level, the uptrend could continue.