By Nathan Ferguson
Ethereum (ETH) depicts bullishness in the future sessions after the alt overcame the symmetrical triangle. Though optimistic, the leading altcoin has to conquer a few obstacles before moving toward significant value areas.
Ethereum Price Outlook
Ethereum movements from January 24 to March 27 resulted in a symmetrical triangle formation comprising four higher lows and three lower peaks. Connecting the swing zone with trend lines forms the triangle setup. Theoretical prediction indicates that this technical setup might trigger a 34% price move. That comes from measuring distance between the triangle’s swing points. Adding that to the $2,837 breakout point unveils $3,818 as ETH’s target.
Ethereum formed a daily candle close beyond $2,837 on March 27, suggesting a breakout. The leading alt gained 22% since then, but bulls seem exhausted. That way, ETH lost 7%, nearing the demand region at $3,077 – $3,197. Analysts trusted a rebound from this barrier would take Ethereum higher to retest the 200-day SMA at $3,489. The alt appears to fulfill the narrative as today’s bullishness had the alt around $3,500. Ethereum traded at $3,501 at this writing, gaining 3.82% over the past day.
Meanwhile, success in flipping $3,489 may propel the token towards the symmetrical triangle’s target of $3,833. More actions by bulls will push the crypto towards the psychological barrier of $4,000, translating to a 25% total gain.
Active deposits are an on-chain metric tracking asset deposits to crypto exchange wallets. An increase in this indicator means bearishness for the underlying token as it predicts investors’ interest in selling their holdings.
Ethereum has seen this metric on downtrends since 2021 November, deteriorating to 205 active deposits at this publication from 22,800. The more than 95% drop in deposits shows Ether holders are cheery about Ethereum’s future price performance and have no problem keeping their coins in cold wallets.
The 30-day MVRV also supports ETH’s bullishness. The indicator measures average losses/profits by traders that bought Ether coins within the past month. Reading beneath -10% shows near-term holders experience losses. Moreover, long-term investors tend to buy at such values. Thus, any figure under -10% is an ‘opportunity area.’
A slight retracement appears possible for ETH since MVRV hovers at a local high of near 10% as near-term investors panic sell. Surprisingly, that could be a bullish correction because of the $3,077 – $3.197 daily demand territory.
For now, Ethereum’s price depicts bullishness, and support from on-chain indicators suggests an investable move towards the $4,000 mark.