The Ethereum price surged over 2% during a low volatility Sunday to currently trade at $2,700. This uptick in the market is a pivotal moment for ETH price as buyers breach the resistance trendline of an 11-week accumulation trend. With the larger holders strengthening their grip over Ether supply, the current recovery trend could gain momentum for a $3,000 breakout.
Ethereum Price Breakout from 11-Week Accumulation Hints at $3,000 Rally
Since early August, the Ethereum price prediction has showcased a sideways trend underperforming to the broader market. Stabilizing above $2,200, this consolidation has strictly resonated within two converging trendlines, indicating the formation of a symmetrical triangle pattern.
Theoretically, this pattern drives a temporary consolidation and allows market participants to recuperate the prevailing trend. However, in rare cases, as seen with ETH, the price breaks out bullishly from the overhead trendline.
As ‘Uptober’ sentiment returned to the crypto market, the Ether price rallied from $2,328 to $2,700, registering a 16.7% growth. The recovery trend challenging the upper boundary of the Bollinger Bands indicator hints that buyers are dominating the market.
With sustained buying, the post-breakout rally could lead to a 26.5% surge to the target $3,375 level.
Santiment data shows that the ETH supply held by top addresses has steadily increased since October 2019, reaching 44.6%. This suggests that large investors and whales accumulate more Ethereum, indicating strong confidence in the asset’s long-term potential.
This trend could reduce the market selling pressure and bolster a sustained recovery rally.
Supply held by top addresses | Santiment
ETH May Plunge as MVRV Spike Signals Profit-Taking
Amid the market recovery, the 30-day Market Cap to Realized Cap ratio (MVRV) has spiked by 6.5%, suggesting that short-term buyers are profitable. While this scenario may suggest a bullish outlook, it often coincides with local market tops, as speculative traders typically choose to book profits.
Thus, the Ethereum price may struggle to drive an immediate rally and show occasional pullback before surpassing $3000.
30-day MVRV
From a pessimistic approach, the ETH price falling below the triangle pattern will accelerate the selling pressure and drive an extended consolidation.
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