Technical and fundamental signs suggest Ethereum (ETH) price may soon break into a bullish run toward its all-time high.
On Monday, Ethereum’s price rebounded by more than six percent to retest a critical resistance level of approximately $2,630, following a successful recovery from the support level of roughly $2,300 over the past three months. Since reaching a correction low in early August, the top-tier altcoin, which has established a niche in the web3 space, has exhibited signs of a potential market reversal.
From a technical analysis perspective, the price of Ether has been consolidating in a symmetrical triangular pattern against the US dollar daily. Peter Brandt, a seasoned trader, has observed that the cost of Ether about the US dollar has been exhibiting a bullish divergence on the daily Relative Strength Index (RSI) and a prospective inverted head and shoulders (H&S) pattern.
Consequently, the price of Ether may be poised to embark on a significant bull run shortly to reach its all-time high (ATH). Additionally, the ETH/BTC pair has established a double bottom in the daily time frame, following a period of stagnation in the previous few years, accompanied by an increasing divergence on the RSI.
In the near term, the bullish posture must be revived by the consistent close of the Ether price above the critical resistance/support level of $2,800 about the US dollar. Alternatively, a correction below $2,400 could occur again before the ultimate rebound toward the all-time high.
#Ethereum could be breaking out of this Symmetrical Triangle any moment! The target is $3,400 🎯 pic.twitter.com/bcYKqv8zrX — The Moon (@TheMoonCarl) October 14, 2024
Institutional investors favor the Ethereum network
Ethereum remains the crypto asset that institutional investors worldwide favor most, following Bitcoin. The Ether network had a daily average traded volume of approximately $18.6 billion and a fully diluted valuation of roughly $314 billion at this time.
The Ethereum network has achieved significant prominence in the Web3 space, with a total value locked (TVL) of over $44 billion and a stablecoin supply of over $84 billion. Larry Fink, the CEO of BlackRock, believes that Ethereum’s blockchain network has the potential to experience significant growth shortly due to the increasing transparency and liquidity.
On Monday, the US spot Ether ETFs experienced a net cash inflow of approximately $17 million, with ETHA from BlackRock spearheading the effort. Nevertheless, Ether’s bullish momentum has been significantly impacted by the significant currency outflows from Grayscale’s ETHE in the recent past.
In the interim, the Ethereum network has encountered significant competition from other layer-one protocols, including Solana and BNB Chain. Justin Bons, the founder and CIO of Cyber Capital, has stated that the Ethereum network is encountering significant challenges as its revenue continues to decrease due to the expansion of its layer two networks.
Consequently, Bons thinks that Ether is economically and intellectually bankrupt and ethically and morally bankrupt.