Ethereum
Ethereum Short-Term Outlook – How High Will the ETH Price Go Up or Down Now?
- Legendary trader Peter Brandt calls Ethereum price chart ‘intriguing’
- Ethereum price showed signs of recovery, with an increase in new addresses
Ethereum has so far exhibited a volatile mix of price movements, initially falling below the $3,000 threshold in recent days before rising above that threshold again.
This price behavior caught the attention of traders and investors, with the asset appreciating by 1.4% in the early hours of Friday. This rally marks a pivotal moment for Ethereum as it strives to maintain its momentum above this key price level.
Analyzing Ethereum Chart Patterns and Overall Market Sentiment
Amid these fluctuations, Peter Brandt, a seasoned trader with decades of experience in financial markets, turned to social media platform express his take on Ethereum’s current price chart, which he called “intriguing.” His analysis sparked much discussion within the trading community.
Brandt’s examination of Ethereum’s price chart revealed two potential patterns: a flag and a channel. Initially, he interpreted the formation as a flag, generally seen as a continuation pattern appearing during brief pauses in dynamic market trends.
However, upon further analysis, Brandt suggested that the model might better resemble a canal.
Source:
This structure is defined by two parallel, sloping lines, with price testing each boundary at least twice. Despite the ambiguity in defining the exact pattern, Brandt highlighted the potential for a breakout in either direction, indicating a neutral stance with respect to the immediate future of Ethereum’s price movements.
This neutrality is reflected in general market sentiment.
For example, data de Santiment reported that sentiment towards major cryptocurrency assets remains “negative,” a persistent trend since the April 19 Bitcoin halving. This episode failed to catalyze a significant increase in market capitalizations across the sector.
Source: Santiment
This overall sentiment suggests that while immediate gains are possible, the market remains cautious about the long-term outlook.
Signs of recovery and technical outlook
Despite the prevailing bearish sentiment, signs of a potential recovery are on the horizon.
According to Glassnode datathe number of new Ethereum addresses has surged, rising above 160,000 from its lowest level below 100,000 earlier in January.
Source: Glassnode
This increase in new addresses could be a bullish signal for Ethereum, indicating greater interest and potential investment in the asset, despite its recent struggles.
From a technical perspective, Ethereum’s daily chart still highlighted a downtrend at press time, with sustained breakdowns of structure to the downside. However, a closer look at the 4-hour chart revealed that Ethereum could see a short-term bullish move. This potential rise could represent a strategic market move to withdraw liquidity to higher levels, before continuing the current downtrend.
Source: ETH/USDT, TradingView
Additional analysis of AMBCrypto supported this viewnoting increased volatility in Ethereum’s price movements as indicated by Bollinger Bands.
Finally, the Relative Strength Index (RSI) showed a reading of 40, reinforcing the strong bearish sentiments in the market.