Ethereum Price Breakout from 11-Week Accumulation Hints at $3,000 Rally

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

The Ethereum price焼けたぎる uptick over the weekend as buyers breached a crucial resistance trendline to currently trade at $2,700. This uptick marks a pivotal moment in the ETH price as buyers breached 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 RallySince 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. This rally breached the upper trendline of the triangle and propelled the price to the highest level since early September.

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.

Top ETH Holders Strengthen Grip as Price Surges to $2,700

According to Santiment data, the ETH supply held by top addresses has steadily increased since October 2019, reaching 44.6%. This metric showcases the buying activity of addresses holding over 100,000 ETH.

As observed, the last time top ETH holders showcased a strong buying activity was in early 2021, coinciding with the market rally to all-time highs. This buying trend suggests that large investors or whales are accumulating 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.

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.

From a pessimistic approach, the ETH price falling below the triangle pattern will accelerate the selling pressure and drive an extended consolidation.

1. What does the Ethereum price breakout from the 11-week accumulation signal?

This breakout from a technical accumulation pattern hints at a bullish continuation, targeting the $3,000 resistance.

2. What is the significance of top ETH holders increasing their positions?

This buying activity suggests strong confidence in Ethereum's long-term potential and could bolster a sustained recovery rally.

3. What resistance level could ETH face before reaching $3,000?

The ETH price may encounter resistance at the upper Bollinger Bands boundary and around the $2,750 level before reaching $3,000.

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