Ethereum price prediction: here’s why ETH could surge soon

Ethereum price stabilized during the weekend as last week’s strong bull run faded. ETH, the second-biggest cryptocurrency, was trading at $3,370 on Monday, a few points below the month-to-date high of $3,500. It has risen by about 60% from its lowest level this year. Ethereum price analysis: pattern points to more gainsTechnicals point to more ETH price gains in the coming months. First, the coin has just formed a golden cross chart pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other. This pattern, which happened on November 21, is one of the most bullish signs in the market.The golden cross happened after the price of Ethereum formed an inverse head and shoulders pattern between August and November of this year. It has moved above the 61.8% Fibonacci Retracement point.Also, Ethereum price has formed a cup and handle pattern, which is a popular continuation sign in the market. The recent pullback was part of the formation of the handle section of this pattern. Ether has also formed what looks like a small bullish pennant chart pattern. Therefore, there is a likelihood that the coin will have a strong bullish breakout as bulls target the year-to-date high of $4,093, which is about 20% above the current level. The bullish ETH forecast will become invalid if the coin drops below the lower side of the handle at $3,020, its lowest point on November 15. ETH price chart | Source: TradingViewETH is under significant pressureFundamentally, there are signs that Ethereum is under intense pressure as whales continue selling the coin and as competition from Solana intensified.Data by DeFi Llama shows that DEX protocols on Solana have handled volume worth over $116 billion in the last 30 days. In contrast, Solana processed volume worth more than $61 billion. This makes it the third month of this year in which Solana has had more volume than Ethereum. The same trend happened in the last seven days as the volume in Solana jumped to over $40.5 billion, higher than the Ethereum network’s $20.47 billion. Solana’s DEX volume has been boosted by the network’s meme coin ecosystem, which has continued doing well. Data shows that Solana’s meme coins like Bonk, Dogwifhat, and Popcat have accumulated a market cap of over $20 billion. This is a notable thing since the first Solana meme coin, Bonk, was launched in December 2022.Meanwhile, Ethereum has continued to trail Hyperliquid and Solana in the perpetual futures market. It handled a volume of $9.02 billion in the last seven days, lower than Solana’s $12 billion.Ethereum is also losing market share in the payment industry, where Tron is dominating the because of its lower transaction costs. Tron regularly handles Tether’s stablecoin volume worth over $100 billion a day.At the same time, there are signs that investors are only focused on Bitcoin ETFs, which have continued firing on all cylinders. Data by SoSoValue shows that the cumulative inflows into Ether ETFs stood at just $106 million. Before Friday’s inflows of $91 million, these funds had net outflows in six consecutive days.Spot Bitcoin ETFs are firing on all cylinders as they accumulated over $30.84 billion in assets since January. The iShares Bitcoin ETF has almost $50 billion in assets, while Grayscale Bitcoin Trust has $21.6 billion in assets. Therefore, despite these challenges, Ethereum price could still stage a comeback as the crypto fear and greed index remains in the extreme greed area of 88. In most periods, cryptocurrencies do well when there is a sense of greed in the market. The post Ethereum price prediction: here’s why ETH could surge soon appeared first on Invezz