Ethereum (ETH) is flashing a bullish pattern on its chart that closely mirrors the setup Bitcoin experienced before its explosive rally earlier this year. Analyst Omkar Godbole from CoinDesk suggests that Ethereum’s eight-month corrective phase has ended, paving the way for a significant upward trend.

Chart Patterns Indicate Momentum

A three-line break chart, filtering out daily noise and irregular price movements, highlights a bullish setup for Ethereum. This pattern, seen previously with Bitcoin in mid-October, led to a remarkable 45% rally in the cryptocurrency, propelling it from $73,000 to nearly $96,000. If history repeats itself, Ethereum could be poised for a similar trajectory, starting from its October lows of $1,500.

Fundamentals Bolster the Technical Setup

Beyond the technical analysis, several fundamental factors are aligning to strengthen Ethereum’s bullish outlook:

1. Network Activity Surge: November saw a sharp increase in the use of BLOB objects by Layer 2 protocols. This activity directly impacts transaction fees, a portion of which is burned, reducing Ethereum’s circulating supply and adding deflationary pressure.
2. Institutional Inflows: On November 29, U.S.-based spot ETH ETFs recorded $332.9 million in net inflows, the highest since their launch in July. This signals growing interest from institutional investors, adding credibility to Ethereum’s market momentum.

Price Targets and Expert Projections

Looking ahead, analysts are setting ambitious targets for Ethereum:

• Block Scholes and Bybit Analytics predict Ethereum could surpass $4,000 before Donald Trump’s inauguration on January 20.
• VentureFounder, a prominent crypto analyst, has identified a pattern that suggests Ethereum might reach as high as $7,238 by Q1 2025.

Should You Buy or Sell?

The confluence of bullish technical patterns and strong fundamentals makes Ethereum an attractive asset for both long-term investors and traders. However, it’s essential to recognize that market conditions can shift rapidly, and all investments carry inherent risks.

Not Financial Advice

This article is for informational purposes only and should not be interpreted as financial or investment advice. Always conduct your own research and consult with a professional before making any investment decisions.