Ethereum‘s performance in the ongoing bull cycle is being considered sluggish compared to other past bull market cycles, where the second largest crypto asset witnessed significant growth within the timeframe. Nonetheless, ETH appears to be regaining upward momentum, showing the potential for a short-term rebound.
An Impending Short-Term Surge For Ethereum
Rebound hopes for Ethereum are picking up steam within the community due to recent price developments. In an X post, Ted Pillows, a market analyst and partner of Binance shared a promising technical analysis about ETH’s performance in the short term.
In the analysis, the expert points to a potential rebound in the upcoming days, allowing ETH to muster enough momentum for a major surge shortly. This upward movement is expected to happen once the altcoin breakouts of a key chart pattern, cited in the 2-hour time frame.
After examining this bullish chart pattern and current price action, Pillows predicts that Ethereum looks primed for a pump in the short term. A short-term pump is just the right push needed to change ETH’s price trajectory, suggesting a shift from the current bearish phase.
Presently, investors and traders are getting rekt with meme currencies and Pillows expects these investors to start returning to utility coins like ETH soon. Due to this, the expert believes that the altcoin is highly likely to recover its upside momentum by the following week, targeting between the $3,100 and $3,300 price range.
After reaching this price range, Pillows points to a possible consolidation phase for Ethereum. However, this consolidation phase is crucial for its next leg up toward higher levels. As investors anticipate a major rally, ETH continues to battle with strong resistance at the $2,700 range despite growing positive behavior from bulls.
The much-anticipated upswing for Ethereum is likely to be backed by the renewed sentiment on the institutional level, as these investors are looking to acquire the altcoin in large quantities. This significant accumulation by big investors is cited around Ethereum’s products, particularly the Spot ETH Exchange-Traded Funds (ETFs).
According to Pillows, the percentage of Ethereum ETFs owned by institutional participants spiked from 4.8% in Q3 of last year to about 14% in Q4. Such growth reflects rising institutional confidence in ETH’s long-term potential and heightened demand for regulated exposure to the asset.
While these big investors are adopting ETH at a huge scale, Pillows noted that retail investors continue to stay bearish. In spite of the bearish sentiment by retail traders, the expert foresees an impending leg up for ETH.
Time To Purchase More ETH?
Ethereum seems primed for a rally soon as the TD Sequential remains in positive territory as reported by technical and on-chain expert Ali Martinez, which is further supported by an Ascending Channel formation.
Each time the TD Sequential indicator flashes a buy signal on the ETH weekly chart around the lower edge of this channel, prices have usually rebounded significantly. Thus Martinez is confident that a similar scenario could be unfolding shortly.
Featured image from Adobe Stock, chart from Tradingview.com
