Ethereum (ETH) has recently demonstrated a shift in market momentum, breaking out of a three-month-long consolidation period. This breakout comes after Ethereum’s price dropped from its yearly high near $4,000, with bulls now eyeing a potential rally toward new all-time highs (ATH).
As Bitcoin recently surged past $76,000, many market participants turned their attention back to Ethereum, which traditionally follows Bitcoin’s price movements. However, Ethereum’s price has been less volatile than Bitcoin’s, rising steadily as the bulls regain control.
Weekly Chart Shows Bullish Signs
A closer look at Ethereum’s weekly chart reveals a bullish outlook. The token appears to be setting up the ‘D’ wave after completing the ‘A-B-C’ wave, which is often a precursor to a significant rally. The weekly MACD (Moving Average Convergence Divergence) indicator is nearing a bullish crossover, signaling a potential continuation of the upward trend. Furthermore, the price is trading between the 50-day and 200-day moving averages, which have served as strong support and resistance levels.
Despite the market facing some bearish sentiment, Ethereum has not experienced a weekly death cross, a sign that the bulls are holding strong, even in a bear market. This suggests the potential for continued upward momentum in the coming weeks.
Potential Bull Run: Will ETH Reach $4,000 in 2024?
The breakout above the bearish range has sparked renewed interest in Ethereum’s price trajectory. However, not all indicators align with the bullish narrative, requiring caution from traders. The exchange reserve has risen in recent days, now exceeding 19.2 million ETH. This signals potential selling pressure, as more tokens are being deposited on exchanges. Additionally, the transfer volume, active addresses, and overall transactions have dropped, contributing to the bearish sentiment in the market.
Yet, some factors support Ethereum’s bullish case. Despite the increase in exchange reserves, net deposits on exchanges have remained below the 7-day average, suggesting lower selling pressure. Furthermore, the surge in long positions and open interest in Ethereum derivatives suggests increased liquidity and interest, which could lead to heightened volatility. Moreover, the liquidation of more than $46 million worth of short positions signals the dominance of bullish sentiment in the market.
What’s Next for ETH?
Despite the mixed signals, Ethereum’s price is at a critical juncture. A rise above the yearly highs at $4,000 would likely fuel a powerful rally, bringing Ethereum back into the spotlight. However, sustained trading above $3,500 could also trigger another bullish run, with Ethereum potentially challenging its all-time highs.
For now, the Ethereum price remains in a wait-and-see position, with traders closely monitoring the market’s next moves. As Ethereum continues to build momentum, the next few weeks could determine whether the bullish trend will continue or if market sentiment will shift once again.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
My work centers on understanding how blockchain, AI, and digital identity are reshaping global industries. At Spearmint, I help lead the direction of initiatives that bring clarity, structure, and meaningful user experiences to complex technological environments. I focus on bridging vision with execution, ensuring that innovation remains practical, scalable, and aligned with long-term growth.
As an author at Coinography, I create insights that translate fast-moving Web3 developments into clear, useful narratives. I explore topics such as decentralized governance, digital identity, creator economies, token models, protocol design, and the shifting cultural patterns around emerging technology. My aim is to make digital transformation more understandable and approachable for a wider audience.
I believe that Web3 is not only a technological shift but a cultural and creative one. Strong ideas, thoughtful communication, and human-centered design will shape which technologies thrive and how communities evolve around them. My writing and research reflect this belief, focusing on clarity, relevance, and long-term perspective.
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