Following an intense week that rocked the cryptocurrency market, Ethereum (ETH) seems to be stabilizing, and some analysts are resuming their bullish outlook. Top market analyst Benjamin Cowen claims that Ethereum could reach $5,000 in a blink if it makes its next significant move. The second-largest cryptocurrency has recovered well from a steep decline that briefly drove it below the $3,900 support zone, and it is currently trading back around $4,200.
Long-term reversal
As ETH tapped its 200-day moving average (black line), which has historically functioned as a long-term accumulation zone, buyers jumped in forcefully, resulting in a quick recovery from last week’s sell-off. The structure appears promising from a technical point of view. The RSI may be about to change momentum, as it has recovered from its mid-range level of 47.
The recent rebound volume spikes, meanwhile, point to rekindled institutional interest that may be waiting for Ethereum’s next leg higher. Notwithstanding recent volatility, the 50-day (orange) and 100-day (blue) moving averages are still in a bullish configuration, maintaining the overall trend. According to Cowen, the correction was a normal aspect of Ethereum’s consolidation stage prior to its subsequent growth. He claimed that ETH is just resetting, doing what it always does before breaking out.
Rapid ETH flip
If market sentiment changes, the move to $5,000 might occur sooner than most people anticipate. Several key factors are supporting this outlook: Ethereum’s network activity is still strong, stake participation is still increasing, and the adoption of layer-2 scaling is growing quickly.
These are all signs of strong underlying demand. In line with Cowen’s blink prediction, ETH may retest its all-time high close to $4,900 if it is able to penetrate above the $4,400-$4,500 resistance zone. In other words, Ethereum’s structural and fundamental health are still sound, despite the fact that short-term volatility continues. The path to $5,000 appears more likely now that momentum is picking up again, and it may happen sooner than anyone anticipated.
