After Bitcoin, This Popular Crypto is Ready to Explode- Will it End 2024 With 20% Gains?
The cryptocurrency market appears to be dealing with recent selling pressure within the market that has temporarily cast a bearish cloud over the market. While Bitcoin has been speculated to lose support at $95,000 after a single test, Ethereum’s lackluster performance has also raised many concerns. Meanwhile, the latest recovery in BTC prices has restored the possibility of a healthy upward trend in ETH prices, while the second-largest coin continues to follow the star cryptocurrency.
this Ethereum price It has maintained a sharp uptrend since the beginning of the quarter, so despite the bearish interference, it is believed to be on track to break through important resistance levels. The main reason for continued bullish momentum next week is strong on-chain indicators, such as a sharp rise in daily active addresses.
Intotheblock data shared by well-known analysts AliActive addresses increased by over 4.24%, and new addresses increased by 2.65%. Meanwhile, zero-balance addresses plunged more than 4%, indicating market participants are optimistic about the upcoming trend. From this, ETH price surged to key resistance levels between $3,700 and $3,810, with over 3 million wallets purchasing over 4.6 million ETH.
As a result, traders are now confident about a potential rally over the weekend, which could help the price break above $5,000 as demand and supply dynamics strengthen. The end of ETH’s price downturn could be determined by Ethereum’s growing strength relative to Bitcoin. The ETH/BTC pair is stuck in a descending parallel channel, a level that does not show any potential for a significant move higher regardless of the bounce.
As seen in the chart above, the weekly ETH/BTC pair failed to rise above the channel’s average band as bearish activity increased. Furthermore, the bearish pattern from Q4 2022 remains intact, suggesting that the second-largest coin is failing to trade independently. Therefore, BTC price needs to rise above the current ATH, which may help ETH price not only break above $4,000, but also reach the important resistance level of $4,200. This move could slightly increase the strength of Ethereum compared to Bitcoin, which could force ETH/BTC to move above the average of the range and eventually move closer to resistance.
Back in 2021, ETH/BTC broke out of a consolidation pattern and surged to new highs, sending the price to new ATHs. Therefore, a breakout of the current consolidation could also have the same impact on Ethereum (ETH) price growth, which could rise and reach 5-digit levels in the upcoming bull run.
