Ethereum price forecast: ETH eyes 30% rally as buying pressure increas
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Ethereum (ETH) is trading at $3,450 as of Monday, up over 4% from the weekend amid heightened buying pressure and a rotation of capital from Bitcoin to altcoins. With Ethereum breaking above the critical $3,400 neckline resistance of a Head-and-Shoulders pattern, the stage is set for a potential 30% rally if bullish momentum sustains.
On-chain and market signals support bullish momentum
Ethereum staking flows turned positive on Friday after seven consecutive days of outflows, with net inflows of 59,000 ETH. This renewed demand in staking coincides with strong inflows into Ethereum exchange-traded funds (ETFs), which recorded $91.3 million on Friday after six days of net outflows.
Spot exchanges also experienced a significant shift, with net outflows of approximately 130,000 ETH worth $435 million over the weekend, indicating reduced selling pressure and heightened accumulation.
According to QCP analysts, the rotation of capital from Bitcoin to Ethereum has also been a contributing factor. Bitcoin dominance fell from 62% to 59% last week, reflecting investors' interest in Ethereum and other altcoins as Bitcoin struggles to break the $100,000 psychological barrier.
DeFi Report analyst Michael Nadeau highlighted that Ethereum’s current trajectory may mimic its 2021 bull cycle, where ETH significantly outperformed Bitcoin in the months following BTC’s peak.
Technical analysis: Ethereum breaks critical resistance
Ethereum’s breach of the $3,400 neckline resistance signals the potential for a sustained bullish breakout. The next significant resistance lies at $3,732, with a yearly high at $4,093 acting as a secondary hurdle. Should ETH maintain momentum, the projected 30% rally could push prices to $4,522.
Momentum indicators, including the Relative Strength Index (RSI) and Awesome Oscillator (AO), are trending upwards above neutral levels, confirming increasing bullish pressure.
However, a daily close below the $3,000 psychological level would invalidate the bullish outlook, potentially sending ETH down to test support at $2,817.
Outlook and key levels to watch
For Ethereum to achieve its 30% rally target, sustained buying pressure must keep the price above $3,400. Breaking $3,732 and $4,093 would confirm the continuation of the bullish trend, while a move below $3,000 would shift momentum to the downside.
The market will closely watch developments in Bitcoin dominance and on-chain metrics to gauge investor behavior. With strong inflows into staking, ETFs, and spot markets, Ethereum appears well-positioned to capitalize on its upward trajectory, though key resistance levels will determine the pace and scale of its next move.
On-chain and market signals support bullish momentum
Ethereum staking flows turned positive on Friday after seven consecutive days of outflows, with net inflows of 59,000 ETH. This renewed demand in staking coincides with strong inflows into Ethereum exchange-traded funds (ETFs), which recorded $91.3 million on Friday after six days of net outflows.
Spot exchanges also experienced a significant shift, with net outflows of approximately 130,000 ETH worth $435 million over the weekend, indicating reduced selling pressure and heightened accumulation.
According to QCP analysts, the rotation of capital from Bitcoin to Ethereum has also been a contributing factor. Bitcoin dominance fell from 62% to 59% last week, reflecting investors' interest in Ethereum and other altcoins as Bitcoin struggles to break the $100,000 psychological barrier.
DeFi Report analyst Michael Nadeau highlighted that Ethereum’s current trajectory may mimic its 2021 bull cycle, where ETH significantly outperformed Bitcoin in the months following BTC’s peak.
Technical analysis: Ethereum breaks critical resistance
Ethereum’s breach of the $3,400 neckline resistance signals the potential for a sustained bullish breakout. The next significant resistance lies at $3,732, with a yearly high at $4,093 acting as a secondary hurdle. Should ETH maintain momentum, the projected 30% rally could push prices to $4,522.
Momentum indicators, including the Relative Strength Index (RSI) and Awesome Oscillator (AO), are trending upwards above neutral levels, confirming increasing bullish pressure.
However, a daily close below the $3,000 psychological level would invalidate the bullish outlook, potentially sending ETH down to test support at $2,817.
Outlook and key levels to watch
For Ethereum to achieve its 30% rally target, sustained buying pressure must keep the price above $3,400. Breaking $3,732 and $4,093 would confirm the continuation of the bullish trend, while a move below $3,000 would shift momentum to the downside.
The market will closely watch developments in Bitcoin dominance and on-chain metrics to gauge investor behavior. With strong inflows into staking, ETFs, and spot markets, Ethereum appears well-positioned to capitalize on its upward trajectory, though key resistance levels will determine the pace and scale of its next move.