The ETH/BTC chart currently shows signs of a potential breakout, mirroring a pattern witnessed in late 2016. Ethereum had then witnessed a spectacular rally, surging 2,738%. But expecting a similar climb in current market conditions would be unrealistic, as it would mean Ethereum reaching an improbable value of over $66,000. However, even a fraction of the 2016 rally could provide substantial rewards to investors. If the ETH/BTC pair successfully establishes a bottom, it could trigger a sustained rise over the forthcoming months, backed by robust market sentiment.
The macro momentum of Ethereum also signals a potential bullish run. The daily on-chain transaction volume in profit has consistently outpaced transactions at a loss. This suggests that a significant portion of Ethereum holders are in profit, providing a solid foundation for a possible breakout from the ongoing consolidation.
An increase in profitable transactions usually indicates bullish sentiment. If more transactions generate profits, it can strengthen Ethereum’s price resilience, especially as traders anticipate further gains. This momentum places Ethereum in a favorable position for an eventual breakout from its current range, with demand potentially rising as ETH approaches its upper limits.
For Ethereum to break the ongoing consolidation, the critical step would be to convert the $2,700 level into a support. Achieving this would confirm a bounce from $2,546, enabling Ethereum to maintain its upward trend established in September. Sustaining above these support levels would indicate Ethereum’s continued market strength.
If Ethereum successfully flips $2,700 into a support level, the next price target could be $3,000. This is a more realistic expectation compared to the speculative gains observed in the past. Attaining the $3,000 mark could stimulate new buying, potentially extending Ethereum’s rally.
However, this optimistic scenario could be invalidated if Ethereum loses support at the upward trend line and falls to $2,344. Such a drop would intensify bearish pressure, testing Ethereum’s ability to regain upward momentum in the near term.
The future of Ethereum, though uncertain, does look promising. With its potential for significant growth and the increasing adoption of blockchain technology globally, Ethereum continues to be an exciting prospect for investors. However, like any investment, it carries risks and should be approached with caution. As always, potential investors should conduct thorough research and consider seeking advice from financial advisors before making any investment decisions.
