Ethereum Remains Above $4,500 Support, Megaphone Pattern Suggests Potential Rally Towards $7,000 for ETH Prices
Ethereum, the second-largest cryptocurrency by market capitalisation, is currently trading around $4,630, down nearly 3% on the day but up more than 8% over the past week. This price movement comes after a retest of $4,270, which confirms a megaphone breakout, targeting $6,800-$7,000.
The technical outlook for Ethereum continues to lean bullish, according to analysts at CryptoBriefing, despite short-term volatility. This bullish sentiment is reinforced by several technical indicators, including a weekly MACD crossover and strong volume during the breakout.
Ethereum has broken a four-year bullish megaphone pattern, a significant development that suggests a long-term bullish trend for the cryptocurrency. This breakout has caught the attention of institutional investors, with large inflows into Ethereum ETFs strengthening confidence in ETH as an investable asset.
One of the key drivers of this institutional interest is the expanding Ethereum Layer 2 ecosystem. Platforms like Arbitrum, Optimism, and zkSync are seeing growing transaction volumes, indicating a robust and active network.
Another factor contributing to the bullish sentiment is the steady yields generated by staking rewards. This has caused institutional players to view Ethereum as a yield-bearing infrastructure play, further increasing its appeal.
Notable companies like BitMine Immersion are also accumulating massive Ethereum holdings, another indication of growing institutional interest in the cryptocurrency.
Wall Street's gradual pivot toward blockchain rails could drive Ethereum's network value to $60,000 per token over the next decade, according to Tom Lee, Head of Research at Fundstrat. Lee also predicts Ethereum could rally to $5,500 in the coming weeks and potentially reach $10,000-$12,000 by year-end.
In the past few weeks, large institutional investors and 'Wales' (crypto whales) have been buying significant amounts of Ethereum ETFs and Ethereum itself, with net inflows of several billion US dollars. This suggests a strong institutional interest and hope for regulatory approvals of Ethereum-ETFs.
At press time, Ethereum was trading at around $4,573, down 0.63% in the last 24 hours. Despite the slight dip, the bullish megaphone breakout remains intact, targeting $6,800-$7,000.
In conclusion, the bullish sentiment for Ethereum remains strong, driven by institutional interest, the expanding Layer 2 ecosystem, and the steady yields generated by staking rewards. As the cryptocurrency continues to break records and attract large inflows, it remains a promising investment option for both retail and institutional investors.
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