Ethereum price dropped for the second consecutive day, mirroring the performance of other cryptocurrencies. The token dropped to the key support at $3,000, down from this week’s high of $3,305. Still, ETH price has formed a highly bullish pattern, pointing to a ~30% jump from the current level.
Ethereum Price Technicals Point to a ~30% Surge
The daily chart shows that the ETH price retreated for the second consecutive day. This decline coincided with the broader crypto market weakness that affected Bitcoin and most altcoins.
On the positive side, the coin has remained above the 25-day Exponential Moving Average (EMA), which has provided it with strong support.
The coin has formed an ascending triangle pattern. This pattern is made up of a horizontal resistance and the diagonal trendline. The diagonal connects the lowest swings in November and December,
The bullish view is supported by the Relative Strength Index (RSI) indicator, which has formed an ascending channel. This indicator shows that the token has more gains ahead.
Therefore, a move above the upper side of the triangle pattern will point to more gains. Such a move will push it to the psychological point at $4000, up by ~30% from the current level.
On the other hand, a drop below the ascending trendline will invalidate the bullish ETH price prediction. Such a move will point to more downside, potentially to the psychological point at $2,624. This price is at its lowest level in November.
Vitalik Buterin Pitches Ethereum as the World’s Heartbeat
In a long X post, Vitalik Buterin, Ethereum’s creator, noted that the network will soon be one of the fastest players in the crypto industry. This surge will be made possible by PeerDAS, which was implemented as part of the Fusaka upgrade and zero-knowledge proofs (ZKP). It will also be made possible by the sharding technology.
Still, Buterin believes that there will be a need for layer-2 networks like Base, Polygon, and Optimism even when this scaling comes to Ethereum. For one, developers will still need networks that are faster than heartbeats.
Buterin has recently argued that Ethereum was close to attaining the three pillars of the crypto trilemma. It will achieve higher security, strong scalability, and more decentralization.
All these numbers will help Ethereum continue gaining market share in the crypto industry. For example, it is still the biggest chain in the decentralized finance (DeFi) industry, with a market dominance of over 70%. It is also the biggest player in the stablecoin industry, where it handled over 8 trillion transactions in the fourth quarter.