Ethereum Price Surges Over 2%, Eyeing a Potential Breakout Above $3,000
Ethereum (ETH) saw a notable price increase of over 2% during a relatively calm Sunday trading session, pushing the cryptocurrency to $2,700. This recent rise marks a key moment for Ethereum, as buyers have managed to breach the resistance level of a prolonged 11-week accumulation phase. With large holders steadily increasing their control over the Ether supply, the current recovery trend could gain enough momentum to challenge the $3,000 mark.
Ethereum Breaks Out of 11-Week Accumulation, Signaling Potential $3,000 Rally
Since early August, Ethereum price movements have reflected a period of underperformance compared to the broader market, with ETH stabilizing above $2,200 in a sideways trend. This price action has formed a symmetrical triangle pattern, with two converging trendlines suggesting consolidation.
In theory, symmetrical triangles indicate temporary consolidation, allowing market participants time to regroup before continuing the prevailing trend. However, ETH has now broken bullishly above the upper trendline, signaling a potential shift.
With the positive sentiment of “Uptober” returning to the crypto market, Ethereum price jumped from $2,328 to $2,700—a notable 16.7% gain. This upward movement, challenging the upper limit of the Bollinger Bands, indicates that buyers are gaining dominance.
If this buying pressure continues, the breakout could propel ETH toward a 26.5% surge, potentially reaching the $3,375 target level.
According to Santiment, the percentage of Ethereum held by top addresses has steadily risen since October 2019, now accounting for 44.6% of the total supply. This accumulation by large investors, or “whales,” suggests strong confidence in Ethereum’s long-term prospects and could reduce selling pressure, supporting a more sustained recovery.
Potential Setback as MVRV Ratio Suggests Profit-Taking
Despite the recent market recovery, the 30-day Market Value to Realized Value (MVRV) ratio has surged by 6.5%, signaling that short-term buyers are now in profit. While this may indicate a positive outlook, such spikes often coincide with local market tops, as speculative traders may choose to cash in their profits.
As a result, Ethereum may experience short-term pullbacks before breaking decisively above $3,000. If the price falls below the triangle pattern, it could trigger additional selling pressure and lead to a prolonged period of consolidation.
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