Ethereum price remains significantly lower than its highest point this year as crypto investors remained on the sidelines after the recent wipeout. ETH token was trading at $4,100 on. Wednesday, down sharply from the year-to-date high of $4,963. This article explains why the ETH price will bounce back in the coming days.
Ethereum Price Technicals Point to a Strong Surge
Technical analysis suggests that the Ethereum price has more gains to go in the near term. It has stalled at the important point of $4,090, a notable level as it was the highest point in March, May, and November last year. Ether has now completed the break and retest pattern, which is a common bullish continuation sign.
Most notably, the coin is now forming the bullish flag pattern, which consists of a long vertical line that began in April when it bottomed at $1,376. It is now in the flag section, which is characterized by a pullback and a descending channel.
Ethereum price remains solidly above the 50 and 100-week Exponential Moving Averages (EMA), which have provided it with substantial support in the past few weeks. Also, the coin is now in the fourth phase of the Elliot Wave.
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Therefore, the most likely Ethereum price forecast is bullish, with the next key target being the psychological level at $5,000. A surge above that level will point to more gains, potentially to $5,625, the overshoot level of the Murrey Math Lines.
A drop below the strong pivot reverse point at $3,750 will invalidate the bullish Ethereum forecast.
ETH Has Supportive fundamentals
The main bullish catalyst is that the coin now has supportive fundamentals, having become the biggest alternative to Bitcoin.
First, Ethereum is seeing strong institutional demand as the cumulative ETF inflows since its inception are nearing the important milestone of $15 billion. This growth has been led by funds by companies like BlackRock, Fidelity, and Grayscale.
Second, Ethereim is being acquired by some top treasury companies. The most notable accumulator is BitMine, whose chairman is Tom Lee. It now holds about 2% of the total supply, a sign that Lee expects it to keep soaring.
Third, Ethereum is widely seen as the best alternative to Bitcoin because of its strong fundamentals. For example, Ethereum is widely used in industries like decentralized finance (DEX), stablecoin, non-fungible tokens (NFT), and gaming.
Additionally, it a a high staking yield of about 3%, which is higher than some other notable tokens like Sui, Hyperliquid, Cardano, and Hedera.
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