The Ethereum market is currently showing signs of breaking out of its consolidation phase, with the price of the token inching closer to the $3500 resistance level. However, recent data indicates that there has been a significant outflow of ETFs worth over $77 million, which could potentially put some downward pressure on the price in the short term.
Despite this, analysts are optimistic that a bullish breakout is on the horizon, with the potential for the price to surge past $4000 in the near future. The recent price action has established a local low range with a target of $3500, which is seen as a key level that needs to be breached for a sustained uptrend to occur. While a new all-time high may still be a ways off, the outlook for Ethereum remains positive.
Looking at the weekly chart, Ethereum appears to be stuck in an ascending triangle pattern, with the recent pullback from the $4000 resistance confirming this. Bulls have managed to keep the price above $3200, pushing it back up towards $3400. However, indicators such as the RSI and MACD suggest that there could be further downside before a potential rebound.
One key factor to watch is the volume, which has been decreasing significantly. This could indicate that a major move is on the horizon, potentially pushing the price back towards $4000. However, sustained buying pressure will be necessary for Ethereum to break above this resistance and reach a new all-time high, possibly surpassing $5000.
As we enter the new year, all eyes are on Ethereum and Bitcoin as they continue to battle for dominance in the market. While both tokens are expected to perform well, there is a growing sentiment that Ethereum could outperform Bitcoin in the coming days. If this scenario plays out, it could lead to a shift in market dynamics, with altcoins gaining momentum.
Overall, the Ethereum price is poised for a significant bullish move, with the potential to test higher targets in the near future. Market participants should keep a close eye on key levels and indicators to stay ahead of potential price movements.