- Top analysts like Carl Moon and Sheldon the Sniper predict Ethereum could surge by up to 80% to $3,000.
- Large investors have recently aggressively accumulated millions worth of ETH, a move typically seen as bullish.
- Despite optimism, technical indicators like positive exchange netflows and a near-overbought RSI suggest potential for short-term price pullbacks.
During this tough first quarter of the year, Ethereum (ETH) crashed severely, dropping its value by almost half. Some investors hoped the worst had ended, but April’s early days brought renewed pressure on the cryptocurrency’s price.
ETH was hit hard by the escalation of the global trade war this month, falling as low as $1,400, the weakest since early 2017. But over the last week, Ethereum has grown by 13%, making substantial advances. The price of ETH is around $1,624, up by 4.5% today.
Analysts Predict Major Ethereum Rally Ahead
Even with a recent rally, plenty of influential analysts and market observers still believe Ethereum’s real rise is ahead of us. A popular figure on platform X, Carl Moon, with 1.5 million followers, pointed out that ETH wants to break out of the descending channel. Moon predicted that if the volumes materialize big enough, Ethereum’s price could shoot up by 80% to $3,000 “in the coming days.”
Like that, analyst Sheldon the Sniper also noted that Ethereum seems to be moving above the upper boundary of a falling wedge pattern, which usually leads to an upward break. Sheldon sees this as a catalyst for a significant rally.
Firstly, Ethereum’s current market position is a great accumulation zone, per X user Crypto King. According to them, they have been aggressively buying ETH as large investors, known as whales, in recent sessions.
On April 14, earlier today, CryptoGoos reported that a single whale had dumped almost $7 million to buy 4,208 ETH.
On the other hand, on-chain analyst Lookonchain declared that another major investor had recently amassed 15,953 ETH worth over $26 million.
The presence of such a large whale is usually seen as a bullish sentiment, proving that investors still have a lot of trust in the asset. These massive transactions could entice investor participation and provide the Ethereum ecosystem with new capital.
Caution Remains as Technical Signals Flash Warnings
Some market commentators are increasingly optimistic, but several technical indicators are warning of a potential downturn.
Ethereum’s exchange netflow has been positive over the past week. The positive netflow also suggests that moving more ETH to centralized exchanges is a standard signal for dropping prices and can indicate a bearish sentiment among investors.
The second important indicator, the Relative Strength Index (RSI), also annoys. The RSI reading ranges from 0 to 100, and traders use it to indicate the possibility of a trend reversal. If an asset takes a close reading above 70, it’s on the verge of getting overbought and may be due for a dip soon. Ethereum’s current RSI reading stays just below the overbought zone, suggesting that some caution is warranted.
