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The crypto market is gradually restoring its ‘Uptober’ sentiment as Bitcoin prices drive a high momentum rally towards $70,000. This renewed momentum has led crypto analysts to predict a bottom formation for Ethereum with a potential surge towards $4,000.
However, the ETH price shows a slight dip of 2.73% today to reach $2,667 and a market cap of $322.2 Billion. The retracement coincides with a 72% surge in 24-hour trading volume, indicating that the risk of a correction remains present.
Ethereum Price Set for $4,000 Rally as Analyst Calls the Bottom
In a recent tweet, the crypto analyst McKenna shares a bullish outlook for the second-largest cryptocurrency, Ethereum, amid a recent price surge. The attached chart highlights the ETH price breakout from a symmetrical triangle pattern in the daily chart. Since August 2024, this chart setup has driven a consolidation trend within two converging trendlines, with a bullish breakout recorded last Sunday.
After a notable consolidation, this upside breakout signals the Ethereum price has bottomed and is poised for a major rally. The crypto analyst emphasized the asset reclaiming $2850 would signal a risk-on environment for traders.
Adding to the bullish sentiment, he noted, “If Trump wins in November, not only does a trending market get established once again, but it accelerates beyond everyone’s expectations.”
If sustained, the Ethereum price prediction could drive a post-breakout rally above $3,600.
McKenna ETH price analysisEthereum MVRV Spike Signals Risk of Near-Term Sell-Off
According to the Santiment data, the 30-day Market Value to Realized Value ratio (MVRV) had recently spiked above the 6%. This on-chain metric assesses whether an asset is overvalued or undervalued by comparing its current market price to the average price at which each token was acquired.
The current positive value indicates the short-term buyers are sitting on notable unrealized gains, which increases the risk of potential sell-off. ETH’s relation with the MVRV ratio last July and September hints that the current price action could witness a notable pullback in the near future.
In the crypto market today, the Ethereum price shows a long-red candle of -2.7%, retesting the triangle pattern trendline as potential support. The downtick, backed by $19.2B in trading volume, reflects the conviction of sellers as they attempt to halt further rallies.
If bearish momentum leads to a daily ETH candle closing below the 100-day EMA and $2,650, it could give bears additional strength to push prices lower.
The post-breakdown fall could drive the asset 9% down to seek support at $2400.
ETH/USD -1d ChartTherefore, the Ethereum price sustainability above $2,650 is essential for achieving the triangle breakout target.
Frequently Asked Questions (FAQs)
Yes, analysts predict that Ethereum has formed a bottom after a recent breakout from a symmetrical triangle pattern, setting the stage for a potential rally towards $4,000.
Ethereum must maintain support above $2,650 to avoid a potential bull trap and prevent further bearish momentum.
The 30-day MVRV ratio recently spiked above 6%, indicating short-term buyers are sitting on unrealized gains
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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