Ethereum adds 23%, ETH/USD breaking out while Bulls Expect Rally to $3k

After a disastrous six weeks—or so, Ethereum stars are now aligning favorably for buyers.

A reprieve, traders anticipate even more price gains in the days ahead, thanks partly to the revival of Bitcoin prices and solid Ethereum fundamentals.

Ethereum Market Performance and Structure

The positive correlation between BTC and ETH prices is significant.

At the same time, what’s ahead for ETH is causing a sentiment shift, as Santiment data shows.

📉👍 To kick off July, #Ethereum holders continued to make history by lowering the percent of $ETH held on exchanges to its lowest ratio since November, 2018. Dropping below 18% for the first time in 31 months lowers the risk of a future major selloff. https://t.co/h7WmA7IoEI pic.twitter.com/rfyT9lwBHy

— Santiment (@santimentfeed) July 2, 2021

As more ETH whales position themselves for a moonshot, it will be inevitable for prices to react.

Already, on-chain data suggests demand and possible accumulation as ETH/USD arise from the pits.

ETH is stable on the last trading day and up an impressive 23 percent versus the USD week-to-date.

At this pace, it has outperformed BTC.

Referring to the ETH/USD price chart, bulls are solid above the 20-day moving average for the first time since mid-May 2021. Rewinding losses of June 21, ETH higher highs indicate optimism.

However, the blemish is the absence of substantial participation to suggest “scrambling” ETH bulls. If anything, ETH trading levels are comparatively lower while prices edge higher. This may point to an intra-week bearish divergence pattern and bulls’ apprehensiveness.

Still, since ETH/USD is within a minor bullish breakout pattern in the daily chart, it may provide an opportunity for aggressive ETH buyers to double down, accumulating like whales.

It is the confluence of fundamentals, BTC firmness, and favorable ETH/USD candlestick arrangements that pump bulls, explaining traders’ confidence.

ETH/USD Expected Rally back to $3k and $4.2k

For instance, on Twitter, one trader, Hodlerhero, is convinced that the turnaround of ETH prices will see the coin race to $4.2k in a buy trend continuation pattern, reflecting events of the first quarter of the year.

#ethereum
time frame :- Daily
price moment prediction pic.twitter.com/dU3y9XbCGA

— Saikat Samanta(#Bitcoin_💪) (@hodlerhero) July 3, 2021

Presently, the analyst observes that ETH/USD breaks out from a descending wedge and expects demand to build up as prices are higher.

ETH/USD also seems to support the 200-day moving average reading from price action in the daily chart.

Nebraskangooner notes that whenever ETH prices fall below the 200-day moving average, prices tend to recover strongly.

#Ethereum

Top Goon X momentum is sitting at a crucial support level.

Notice that when the momentum line breaks below this support, price usually sees a dramatic pullback.

Something to monitor. pic.twitter.com/oawJSArKcY

— Nebraskangooner (@Nebraskangooner) July 2, 2021

After briefly dropping below this level, ETH/USD prices are now bouncing back in a development that may build momentum for further gains as we forge ahead.

Ethereum is “Looking Good”

On Trading View, DU09 says Ethereum price action is looking good as candlestick arrangements begin turning back after losses of May and June 2021.

Specifically, the Stoch-RSI and RSI-MACD are moving higher. Also, moving averages on the ETH/USD price action in the daily chart are positively slanted, revealing growing demand.

Accordingly, ETH prices are now lined up for a possible rally to $3k.

Still, in his assessment, the uptrend won’t be without bumps. This, he reckons, would be more reasons to accumulate ETH, especially if there is a bullish cross on MACD for ETH and BTC.

Bullish Divergence on MACD: Ethereum Ready to Rip

Crypto Rover, on YouTube, is bullish of another wave higher as there is a bullish divergence pattern in the daily chart.

Specifically, ETH prices were dropping while there were higher highs on the MACD. Besides, ETH/USD prices are breaking above key resistance levels, a reason advising his optimism.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.