Key Takeaways
Ethereum has experienced a remarkable 35% price increase in the past four weeks, attributed to a fractal-based rally, robust technical indicators, and $11 million in spot market inflows. Analysts are optimistic about further gains if ETH successfully breaches the resistance at 0.02938 BTC.
Over the last month, Ethereum [ETH] has ascended a bullish trajectory, achieving a staggering 35% rise. Within the past 24 hours alone, the asset has surged double digits, crossing the 10% threshold.
This trending liquidity shift from Bitcoin (BTC) to ETH seems to underpin this bullish movement, but a deeper analysis reveals additional influences steering Ethereum’s next potential move.
Fractal Insights: A Predictive 28-Day Rally
Market analyst Joao Wedson, founder of Alphractal, recently highlighted notable correlation patterns between Ethereum and Bitcoin.
His analysis suggests that ETH commonly rallies 28 days following Bitcoin’s new all-time high, facilitated by the rotation of liquidity from BTC profits.
Historical data corroborates this theory. In both the 2017 and 2021 cycles, ETH showcased explosive gains following Bitcoin’s ascension past critical benchmarks of $19,000 and subsequently over $68,000.
Source: TradingView
During the 2017 Bitcoin cycle, ETH skyrocketed over 100% while BTC experienced a 30% drop, showcasing its potential to rise against BTC market fluctuations.
Following Bitcoin’s latest all-time high at $123,000 on July 14, analysts predict a similar countdown has begun for Ethereum’s imminent breakout.
Building Momentum Amid Sellers’ Regret
The ETH/BTC chart is indicating fresh higher highs, which signifies a robust liquidity inflow toward ETH paired with BTC outflows.
Presently, the chart is approaching a critical resistance level at $0.02938. A retreat in this area could lead to a pullback into the red-shaded demand region.
Source: TradingView
However, complacent sellers may find themselves facing losses, as technical indicators suggest a prevailing bullish trend.
The Aroon Indicator, key in gauging trend strength, registered the Aroon Up at 100%, while the Aroon Down dwelled at a mere 7.18%—validating the ongoing bullish momentum.
Further upside appears increasingly probable.
Source: TradingView
Insights from AMBCrypto reveal a bullish signal from the Moving Average Ribbon, highlighting that the 20- and 50-day MAs have crossed above the 100-day MA.
Confirmation of this bullish trend will likely occur upon crossing over the 200-day MA, potentially leading to significant losses for sellers currently at resistance levels.
A Surge in Spot Buying Activity
Spot market participants have resurfaced following a brief period of selling.
Recent data from CoinGlass indicates an impressive $11 million inflow into Ethereum within the last 24 hours.
Source: CoinGlass
Much of the newly acquired ETH is being directed to private wallets, indicative of long-term market conviction and a shift in investor sentiment.
Should this trend persist, the augmented liquidity could propel Ethereum toward new highs in the near future.
