Ethereum is likely on the verge of a major price recovery, with analysts predicting a challenge to previous all-time highs within three months. Significant indicators, including a bullish candlestick pattern and rising new address creation, point to increased organic adoption. Despite recently muted prices, Ethereum’s fundamentals appear robust, suggesting a potential upcoming bull run driven by real utility rather than speculation.
Ethereum (ETH) could be gearing up for a significant comeback, as signals from both technical charts and on-chain data suggest an imminent trend reversal. With a notable uptick in new address creation, there appears to be a wave of organic adoption fueling optimism in the market. Analysts predict that within a matter of 90 days, ETH might test its previous all-time highs, revisiting levels not seen for quite some time.
Currently, Ethereum is trading at $1,833.92, reflecting a 1.26% rise for the day and a solid trading volume of $15.72 billion, which is an increase of 4.16%. Over the last week, ETH has gained 3.51% overall, hinting at a growing sense of optimism among investors. Notably, crypto analyst NoName is convinced that Ethereum’s recovery is not only possible but likely. This belief is bolstered by several key indicators pointing toward a promising upswing.
The analyst cites a rare Dragonfly Doji candlestick formation visible on Ethereum’s monthly chart as a strong bullish signal, likening it to the patterns observed in 2017 just before Ethereum’s spectacular rise during the ICO frenzy. Moreover, the price touching a long-term parabolic support line suggests there’s still a low probability of breaking this pattern downward, further enhancing the bullish case.
Another key metric, known as the Z-Score MVRV, which measures investor sentiment and market valuation, has now entered an accumulation zone. This is a clear sign that market despair might be peaking, creating potential for a rebound. Analysts see this as a positive step, aligning with the optimism that Ethereum, with co-founder Vitalik Buterin actively involved, may soon benefit from major protocol upgrades that could greatly enhance speed, scalability, and ultimately attract institutional and retail investment.
Ethereum’s network also exhibits subtle yet encouraging signs of strength. The new address momentum has turned a corner, with the 30-day moving average for new wallets exceeding the yearly average—something that has historically heralded major adoption waves, akin to those seen during the 2017 ICO craze and the DeFi surge in 2020. This growth phase feels different; it seems sustainable, focused more on onboarding real users than merely riding the waves of speculation.
Layer-2 innovations have eased transaction costs considerably, attracting interest in tokenised real-world assets like government bonds and gold, all utilising Ethereum’s network. This shift marks a departure from hype-driven cycles, leaning more toward genuine usability. Continued focus on utility could lay down a solid foundation for long-term value appreciation in the Ethereum ecosystem.
From a risk-reward perspective, the current price levels of ETH can serve as an advantageous entry point for those considering long-term investments. Despite the current price being relatively low, there’s a notable increase in on-chain activity, which typically forebodes a major price rally. Even though Ethereum’s performance has lagged in recent months, the underlying fundamentals appear stronger than ever. With rising new addresses and significant protocol developments, the stage could be set for an upcoming bull market, possibly in the next few months.
