Ever since Bitcoin completed its fourth halving, Ethereum has been experiencing a steady recovery. Daily charts show new high-low formations, indicating positive signs for the leading smart contract platform. So, what’s the current situation on Ethereum? Let’s take a look at the latest data.
Short-Term Analysis of Ethereum
While the overall growth of the cryptocurrency market remains limited, Ethereum’s price managed to increase by 17%, going from $2,870 to $3,335. Analyzing the daily chart, it becomes evident that the ETH price is approaching a critical point with the formation of a falling wedge pattern. In the short term, this suggests a downward trend for Ethereum.
However, this chart setup is known for gathering bullish momentum and sustaining dominant rallies. With an intraday gain of 2.16%, the ETH price is showing an upward trend from the weekly resistance level of $3,280. This breakout is encouraging buyers to challenge the resistance trend line of the falling wedge pattern once again.
Analytical Reports on ETH
According to on-chain data analyzed by Lookonchain, prominent investor James Fickel is actively accumulating Ethereum (ETH) while maintaining his long position in the ETH/BTC trading pair. Lookonchain’s tracking reveals that Fickel borrowed approximately $119.75 million worth of 2,301 Wrapped Bitcoin (WBTC) from the decentralized finance platform Aave.
On January 10, Fickel traded this borrowed WBTC for 41,947 ETH at an exchange rate of 0.055, coinciding with the launch of a Bitcoin ETF. In addition, Fickel has allocated $35 million USDC to purchase 10,952 ETH at $3,196 each over the past three days. This significant investment could indicate a bullish trend for Ethereum, with a higher potential for breaking the falling wedge pattern. If the potential breakout occurs, it could signal the end of the previous correction and potentially push the price above $4,000.
Disclaimer:
The information provided in this article should not be considered investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
