Analysts Say a Right Shoulder for Ethereum Price May Develop If…

Ethereum price is gaining traction with strong on-chain activity and market momentum. A potential head-and-shoulders pattern signals bullish growth, while ETF inflows hit record levels. Recent whale transactions also show confidence in Ethereum’s potential for further price gains.

Ethereum’s Bullish Technical Pattern

The Ethereum price exhibits a textbook type of head and shoulders pattern forming, taken as a sign of a vital bullish indicator.

Looking at Ethereum’s historical data, in mid-April Ethereum consolidated in between $2,800 for 37 days before making a major move higher.

According to Ali,  at this moment we’re starting to see another similar consolidation pattern form, which suggests that the right shoulder is forming, hinting at a possible bullish continuation.

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Ethereum is finally reinforcing strong upward momentum, with Ethereum holding above $3,400 as it continues.

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Traders may be looking to take profit at $3,700, given that this is our next key resistance and could see a lot of selling there. Ethereum, with the ascending price trajectory, continues to be bullish in the short term.

Along with the head-and-shoulders formation, the solid investor confidence base has also increased. the asset is pretty set to show additional price gains  if it can successfully test and surpass resistance levels.

Whale Activity Signals Market Strength for Ethereum Price

Whale activity is becoming significant, bolstering the bullish outlook for Ethereum. A whale has deposited a total of 14,611 ETH, nearly $47.3 million, to Coinbase over the past two days.

The average price at which these transactions transpired was estimated at $3,240 per ETH, which demonstrates faith in the current valuation of Ethereum.

These large deposits aside, the whale currently maintains possession of a large balance of 5,111 ETH, valued at $17.1 million. It is also important as it reflects the commitment of Ethereum’s long-term potential.

The size of these transactions generally indicates rising interest by high-net-worth individuals or institutional investors.

In addition, whale transactions can be an indicator of potential price movement of the currency. However, when liquidity goes into exchanges, there is a possibility that market participants will leverage the capital in anticipation of more activity in the trading space. While it can cause short-term volatility, it solidifies an upward trajectory in the long run.

ETFs and Price Momentum Boost Confidence

January is the strongest month for Ethereum ETFs, recording $166.6 million in net inflows. Ethereum’s price hike to $3,409 slots the surge in inflows at a time when the market demands the asset.

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ETFs make Ethereum a legitimate asset as an accessible investment vehicle for institutional and retail participants.

However, Ethereum ETFs are becoming increasingly popular, as the total assets under management (AUM) for them have now reached above $12 billion.

They indicate an increasing faith by investors that Ethereum is a real and reliable digital asset.

Incorporating ETF participation into the equation, the steady growth continues to cements Ethereum as the dominant cryptocurrency in the market.

In addition, flows into Ethereum ETFs show that Ethereum can weather market fluctuations. With institutional support, Ethereum remains an attractive combination of speculation and long-term investment, and therefore contributes to the sustained price appreciation.

While the funds continue to flow into Ethereum as more investors back the concept, this is expected to ride the wave of positivity sustained by the broader market sentiment.

Ethereum Price Gains Momentum as Bullish Trends Push Above $3,400

ETH is currently trading at $3,412 as part of bullish momentum supported by a bullish trendline and good market dynamics. ETH has made a steady high of $3,450 and a low of $3,269 in the past 24 hours indicating solid demand and positive trend.

Support is key at $3,000 and at $3,200, a common block during recent pullbacks, while $3,700 remains as the next key resistance.

At 60.33, the RSI shows ETH has room to push higher before another bearish trend can potentially emerge, also the MACD is still above the 0 level, which means we are still in a bullish momentum.

Nonetheless, if the token loses the $3,400 support, we may see a retest below $3,000 or all the way down to $2,800. Ethereum consolidates above $3,400 and an optimistic outlook for a 8% push higher to key resistance.