Ethereum (ETH) is showing strong signs of accumulation and potential for an upcoming price surge.
On-chain data indicates record-low exchange supply, suggesting a possible bullish breakout in the coming days and investors’ sentiment is also turning bullish.
Blockchain analysis platform, Santiment, reports Ethereum is being moved off exchanges and into cold wallets swiftly. Only 6.38% of ETH’s total supply remains on exchanges, marking the lowest level since its inception. This declining exchange supply is a bullish signal alongside a positive shift in community sentiment.
While ETH underperformed compared to other large-cap cryptocurrencies in 2024, renewed interest in February suggests anticipation of a potential rebound.
Ethereum to $4,000? Analyst Sees Bullish Chart Pattern
In addition, crypto analyst Ted Pillows posted a 2-week ETH/USDT chart on X platform highlighting an ascending triangle pattern—a historically bullish formation.
The chart suggests ETH is approaching the upper resistance level of $3,971, with multiple bounces off the rising trendline. If ETH successfully breaks above this resistance, the next target could be $4,000 and beyond.
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The ascending triangle pattern typically indicates an imminent breakout, especially when combined with increasing volume. Considering that ETH has consistently respected its rising trendline since 2022, a breakout to new highs remains a strong possibility.
ETH Price Analysis: RSI Neutral, MACD Bullish Divergence
A deeper look at the ETH price analysis using the daily chart shows that the Relative Strength Index (RSI) reads a value of 41.68 — this means that the digital asset is neither overbought nor oversold. A move above 50 could indicate strengthening bullish momentum.
MACD Indicator Shows Bullish Consolidation
On the other hand, the MACD indicator shows that the MACD line (blue) remains above the signal line (orange) after confirming a bullish divergence on the daily chart previously.
Related: Can Ethereum’s February Consistency Kickstart Altcoin Gains?
The MACD histogram remains green but the intensity of the bars indicate consolidation in the $2,400-$2,800 range.
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