Ethereum has experienced a relatively sluggish performance during the current bull cycle, especially when compared to its remarkable growth in previous cycles. However, signs indicate that ETH may be regaining upward momentum, suggesting a potential short-term rebound.
An Impending Short-Term Surge For Ethereum
The Ethereum community is becoming increasingly optimistic about a rebound based on recent price developments. Market analyst Ted Pillows, a partner at Binance, shared a compelling technical analysis via an X post that supports hopes for ETH’s short-term resurgence.
Pillows suggests that a notable rebound could happen in the coming days, enabling ETH to gain enough momentum for a significant surge. This upward movement is likely to materialize following altcoin breakouts of a crucial chart pattern observed on the 2-hour time frame.
Upon analyzing the bullish characteristics of this chart pattern alongside current price trends, Pillows is confident that Ethereum is positioned for a short-term rise. Such a surge could provide the necessary momentum to shift ETH’s prevailing bearish trend.
Currently, many investors are witnessing losses with meme currencies, and Pillows anticipates that these investors will soon start gravitating back toward utility projects like ETH. He speculates that the altcoin is poised to recover its upward momentum next week, with price targets set between the $3,100 and $3,300 range.
Should Ethereum reach the projected price range, Pillows anticipates a consolidation phase ahead. This consolidation is deemed essential for positioning ETH for its next upward momentum. Despite the positive behavior from bulls, ETH is still facing notable resistance near the $2,700 mark, as it strives to gain ground.
The expected upswing for Ethereum may be further bolstered by renewed institutional sentiment, with large investors showing interest in acquiring the altcoin. Significant accumulation is particularly evident with Ethereum’s products, notably the Spot ETH Exchange-Traded Funds (ETFs).
According to Pillows, the percentage of Ethereum ETFs held by institutional participants increased from 4.8% in Q3 of last year to about 14% by Q4, indicating growing institutional confidence in ETH’s long-term prospects and heightened demand for regulated exposure to the asset.
While large-scale investors rapidly accumulate ETH, Pillows observes that retail investor sentiment remains bearish. Despite this prevailing bearish stance among retail traders, the expert remains optimistic about an impending ascent for ETH.
Time To Purchase More ETH?
Given the consistent indicators pointing toward a rally, Ethereum appears poised for significant movement soon. The TD Sequential indicator is currently in positive territory, as noted by technical and on-chain expert Ali Martinez, who highlights an Ascending Channel formation in the market.
Historically, the TD Sequential indicator has signaled buy opportunities on the ETH weekly chart near the channel’s lower edge, often leading to noteworthy rebounds. Martinez is hopeful that a similar pattern may be emerging shortly.
