Ethereum price is showing signs of life again after plunging to a multi-month low earlier in April. ETH jumped to a high of $1,760 on Friday, its highest level since April 6, and almost $305 above the lowest point this month. It has formed two unique patterns, pointing to a strong surge if it crosses the key resistance at $2,150.
Ethereum Price Could Be on the Verge of a Surge
A popular crypto analyst has identified a falling wedge and a bullish chart pattern on Ethereum’s daily chart. In his post, he noted that Ether doubled in a few weeks the last time the wedge and the divergence patterns occurred.
The daily chart below shows that the Ethereum price has formed a descending channel in the past few months. Its upper side connects the highest swings since December 16, while the lower side links the lower lows since December 20.
This descending channel closely resembles a falling wedge, which occurs when there are two descending and converging trendlines. Ether has now moved above the upper side of this channel, signaling a potential comeback in the coming weeks.
Most importantly, oscillators have formed a bullish divergence pattern. The Relative Strength Index (RSI) has moved above the descending trendline that connects the highest swing since December 7.
Also, the Awesome Oscillator has formed a bullish divergence and is about to cross the zero line. Other oscillators like the MACD and Stochastic Oscillator have also formed a bullish divergence.
Therefore, while Ethereum is risky, there is a likelihood that it may stage a strong comeback soon. If this happens, the initial level to watch will be $2,150, the lowest level in August and September. A move above that level will point to more gains, potentially reaching $3,500, which is an increase of 100% from the current level.
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Ethereum Network Is Still Doing Well
Ethereum is still facing substantial challenges this year. The most notable one is the ongoing competition from layer-1 and layer-2 chains.
Still, the network is doing relatively well. Its DEX networks handled over $57 billion in the last 30 days, second only to Solana. It is still the biggest chain in terms of total value locked (TVL).
Ethereum also offers a strong monthly yield. StakingRewards data indicates a 3.4% yield, surpassing that offered by other chains, such as BNB and SUI. This suggests that Ethereum’s yield could continue to rise, particularly if Bitcoin surpasses the resistance level of $100,000 and approaches its all-time high.
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