Ethereum Price Prediction After Flipping Key Level: Buy or Sell?

Ethereum’s price took a leap this week, hitting heights not seen since February. With a stunning rise over 115% from earlier lows, the question arises: is it time to buy or sell?

Ethereum Price Surges Amid Market Recovery

The Ethereum price saw a remarkable uptick this week, soaring to unprecedented heights not witnessed since February. As the cryptocurrency market shows signs of recovery, ETH crossed the significant resistance level of $3,000, resulting in an incredible rise of over 115% from its lowest point observed this year. Crypto enthusiasts are now pondering the implications of these developments: is it the right time to buy, or should they sell?

Technical Analysis Shows Positive Trends

Examining the daily chart, it’s clear that Ethereum hit a low of $1,388 in April before staging a strong rally. Following several months of consolidation, the token launched into a significant bull run this week, breaking above the previously established resistance level at $2,875—the peak from May. This breakthrough is crucial, as it negates the formation of a double-top pattern, often considered a risky signal for traders.

Bullish Patterns Signal Further Upside

Adding to the bullish sentiment, Ethereum has formed a golden cross pattern, which occurs when the 50-day and 200-day Exponential Moving Averages (EMA) intersect. This signal is viewed as one of the most reliable indicators in technical analysis for predicting upward trends in price. Moreover, the ETH price has breached the bullish flag formation and surpassed the crucial 50% Fibonacci Retracement level, while both the Relative Strength Index (RSI) and MACD indicate positive upward momentum.

Potential for Continued Growth

Experts suggest that a brief pullback to retest the support at $2,875 is a likely next step for ETH, a phenomenon known as a break-and-retest pattern. This strategy is widely recognized in trading as one that can signal continuation. If this retest is successful, it could catalyse further price gains leading ETH towards the psychologically significant $4,000 mark.

ETH ETF Inflows Hit New Highs

An additional factor in Ethereum’s recent price surge is the increasing demand from Wall Street investors. The latest data reveals that spot Ethereum ETF inflows have surpassed the critical $5 billion milestone for the first time in history. This surge in inflows represents a record streak of ten consecutive weeks on an upward trajectory, with the latest weekly additions reaching $1 billion, compared to a mere $219 million before that.

Broader Market Dynamics Drive Demand

Contributing further to this price rise is the ongoing Bitcoin rally, which has witnessed BTC breaking above the $110,000 mark, then shooting swiftly towards $120,000. Such movements in Bitcoin often drive price action in altcoins like Ethereum, as traders react to potential opportunities with a sense of urgency. Additionally, Ethereum’s DeFi ecosystem shows promising metrics, with the total value locked (TVL) exceeding $156 billion and its stablecoin supply hitting a record high of $128 billion, both of which bolster ETH’s appeal in the crypto space.

In summary, Ethereum is poised for an exciting phase following its recent price surge above $3,000. The market dynamics revealing rising ETF inflows, heightened investor demand, and positive technical indicators like the golden cross and bullish flag pattern suggest a potentially bullish outlook. Investors need to stay alert and prepare for possible price action as Ethereum possibly heads toward the $4,000 milestone.