Ethereum
Ethereum’s ‘Failed’ Breakout – When Will ETH Price Break Above $3,500?
- Ethereum price has fallen more than 3% in the last 7 days
- Key metric revealed ETH was undervalued, hinting at recovery on charts
Ethereum [ETH] Bitcoin price turned bullish on June 28, giving investors hope of a recovery from past losses. Unfortunately, this uptrend did not last long, as the cryptocurrency experienced a price correction shortly after. This led to its weekly and daily charts flashing red.
Ethereum Faces Rejection
After the above-mentioned price surge, ETH bears gained momentum again and pushed the altcoin’s price down by over 3%. At the time of writing, the king of altcoins was trading at $3,391.51 with a market cap of over $407 billion.
The worst news was that Ethereum was rejected from the upper boundary of a bullish wedge pattern in the recent past. According to a Tweeter According to ZAYK Charts, a renowned crypto analyst, the token’s price began consolidating inside the pattern in late May. A successful breakout could have resulted in a 30% price increase, which could have allowed Ethereum to surpass $4,000.
Interestingly, a similar trend appeared in early March, only to break out in May. This helped the altcoin reach $3.89,000 on the charts. However, since ETH was rejected this time around, the chances of history repeating itself might be slim.
Source: X
Will ETH not recover?
AMBCrypto then took a closer look at the current state of Ethereum to see if it would fail to break out of the bullish pattern.
We saw that market sentiment around the king of altcoins remained bearish. This was demonstrated by the decline in its weighted sentiment after reaching a peak on June 28. Its network growth has also declined slightly, meaning fewer addresses have been created to transfer the token.
Source: Santiment
However, there were some indicators that pointed to a successful escape.
For example, the MVRV ratio has improved in recent days, which can be interpreted as a bullish signal.
AMBCrypto’s evaluation of Glassnode data also revealed that Ethereum’s NVT ratio had declined sharply. A decline in this metric generally means an asset is undervalued, implying a future price rise.
Source: Glassnode
AMBCrypto then looked at data from Hyblock Capital to look for immediate support and resistance levels.
According to our analysis, it would be crucial for ETH to reach and surpass the $3.5K mark in order to maintain a bullish rally as liquidations increase sharply. Generally, an increase in liquidations often leads to price corrections on the charts.
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On the other hand, if bears continue to dominate and ETH volatility increases south, then it could fall to $3,060.
Source: Hyblock Capital