Ethereum Poised to Break Out of Consolidation, Price Could Rise Back to $3,000In short, Ethereum's price could rise back to $3,000 if the asset successfully breaks out of its current consolidation range. The recent crisis led to realized losses that were close to annual highs, but these have now declined significantly
Ethereum Poised to Break Out of Consolidation, Price Could Rise Back to $3,000
In short, Ethereum's price could rise back to $3,000 if the asset successfully breaks out of its current consolidation range. The recent crisis led to realized losses that were close to annual highs, but these have now declined significantly. At the same time, the MVRV ratio is within the range of opportunity accumulation. As investors shift from selling to potential buying, the price of Ethereum (ETH) could benefit from a change in investor sentiment. This is a sign that realized losses have declined, after reaching their highest level in 11 months less than two weeks ago. Investor confidence in Ethereum could grow, potentially pushing ETH prices higher from their current position around $2,600.
Consolidating below $2,681, the king of altcoins has been looking for a breakout, which could be coming soon. The reason behind this is the cessation of selling. Looking at the realized losses faced by ETH holders over the past three weeks, it can be seen that the July crash ignited panic. This led to a sudden sell-off which led to massive losses. Ethereum realized losses were high but have shifted in the last 10 days, with a slight price uptick that has rekindled hope for a rally. This is a bullish sign, which is further strengthened by the market value to realized value (MVRV) ratio. If ETH holders start accumulating from here, the price recovery of Ethereum could strengthen.
ETH Price Prediction: Breakout Imminent
Ethereum is currently trading at $2,630, consolidating between $2,681 and $2,546. This short-term consolidation has been supporting ETH for the past two weeks. However, the aforementioned factors suggest that this consolidation could see a breakout. Following a breakout, ETH could bounce back to the next resistance level of $2,930, and breaking through this level would push ETH toward $3,000. Breaking through this resistance could send the price of Ethereum to $3,300, reaching this level would mark a complete recovery from the July crash.
Ethereum Price Analysis
However, if the price of Ethereum fails to break out of $2,930, it could enter another consolidation above $2,681. A prolonged period of sideways trading could invalidate the short-term bullish argument.
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