Ethereum (ETH), the second-largest cryptocurrency by market cap, is flashing multiple bullish signals that suggest a potential upside move. However, rising exchange reserves are tempering this optimism.

Has Ethereum Formed A Local Bottom?

Ethereum has dropped nearly 20% over the past two weeks, falling from approximately $2,805 on February 23 to just above $2,200 at the time of writing. This decline has wiped out $80 billion from ETH’s market cap.

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Despite this sharp pullback, crypto analysts are pointing to several bullish indicators that could signal an impending price reversal. Crypto analyst Merlijn The Trader, for instance, has highlighted that ETH is following the Wyckoff Reaccumulation Pattern.

For those unfamiliar, the Wyckoff Reaccumulation Pattern is a technical analysis method developed by Richard Wyckoff. In the context of ETH’s current price action, this pattern suggests that the asset may be entering an accumulation phase before a potential upward movement.

The analyst further noted that the “spring phase” has just been triggered – indicating a possible bear trap where a brief dip below support levels misleads sellers, potentially setting the stage for a rally. A bounce from this level could see ETH climb to $4,000.

In a separate X post, Merlijn The Trader also pointed to a bullish divergence in Ethereum’s 4-hour chart. According to the analyst, ETH’s next immediate target is $2,700 before moving higher. Fellow crypto analyst CryptoGoos echoed these sentiments.

Beyond technical indicators, whale activity has added to the bullish sentiment surrounding ETH. In an X post, crypto analyst Ted noted:

Ethereum whale bought 17,855 ETH worth $36,000,000 at an average price of $2,054. Total holding $2,530,000,000 Ethereum. You think this is going down? Think again.

Rising Exchange Reserves May Spoil The Party

On the bearish side, crypto analyst Ali Martinez pointed out that ETH reserves on exchanges have been steadily rising. Over the past two weeks, more than 610,000 ETH has been transferred to exchanges, which could increase selling pressure.

Martinez’s analysis aligns with a recent report that found that despite ETH’s Relative Strength Index (RSI) being at a multi-year low, there could still be further downside in store for the digital currency.

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Indeed, ETH has been marred by significant bearish sentiment due to its relatively weak price performance over the past two years compared to cryptocurrencies like Bitcoin (BTC), Solana (SOL), and XRP.

However, extreme bearish sentiment could act as a contrarian signal, setting the stage for a surprise rally. At press time, ETH trades at $2,200, up 6% in the past 24 hours.

Featured image from Unsplash, charts from X and Tradingview.com

Ethereum’s price may have been facing significant downside pressure due to an overall market downswing, which is believed to be caused by recent negative macroeconomic conditions. However, a seasoned crypto expert predicts a transition in price behavior from bearish to bullish for ETH as the asset could be experiencing a rebound in the short term.

A Notable Price Reversal Brewing For Ethereum

Ethereum price action is eyeing a potential bullish reversal from its current downward trend. Technical expert and investor Jonathan Carter points to a bullish formation that could spark a notable upsurge to key resistance levels.

Looking at the chart in the 1-day time frame, Ethereum has formed a massive Descending Channel pattern as bearish movements extend. A Descending Channel formation is considered a bullish technical pattern formed by connecting the lower highs and lower lows with parallel trendlines. 

Once the price breaks above the upper trendline, it usually indicates that a rally could be on the horizon. As Ethereum hovers around the key technical pattern, the altcoin has formed a key support at the $2,060 level.

Jonathan Carter highlights short-term and long-term opportunities near this support level with targets at $2,360 and $2,560. In the event that Ethereum rebounds and breaks out of the descending channel, the expert foresees a move to the $3,450 mark, where the asset may witness increased buying pressure.

ETH’s breakout signals the beginning of a strong upward trend and the potential end of the ongoing correction. Should the rally continue, the next key resistance barrier to challenge is at $4,050, where the current downward trend initially began.

Analyzing the 1-week time frame, the much-anticipated reversal is capable of reaching new all-time highs in the upcoming weeks. Carter has identified a huge Ascending Triangle pattern on the weekly chart, signaling growing momentum toward the upside.

The chart shows that Ethereum is attempting to bounce from the ascending triangle support, which will propel its price into uncharted territory. Furthermore, the altcoin’s price has managed to stay above the 100-day Moving Average (MA) and the multi-year trendline. When the breakout occurs, Carter expects bullish momentum to drive prices to targets at $3,200, $4,000, $4,850, $6,000, and $7,500.

Has ETH’s Price Bottomed Out?

Recent downward trend has caused ETH to revisit a crucial level that previously led to a substantial upswing. Market expert and trader Titan of Crypto spotted the development, which indicates an impending price resurgence.

Specifically, Titan of Crypto noted that Ethereum has fallen to the 2024 low on the perpetual 1-day chart. Considering the 2024 price trend, the altcoin may have bottomed out and is gearing up for a rebound at the most significant point of interest.

Featured image from Unsplash, chart from Tradingview.com