Ethereum bouncing beyond $2,570, forming a bullish flag pattern with a 33% upside potential. Derivative data suggests a breakout to $3,577.
Once Bitcoin regains $109,000, Ethereum will start the weekend with a positive note and trade for $2,570. With a 200-day bounce from the EMA, Ethereum suggests a potential double flat breakout, which could lead to a price surge of over 30%.
Ethereum price analysis
Ethereum continues to integrate daily chart sideways between 38.20% to 50% Fibonacci retracement levels, which are $2,395 and $2,699, respectively.
Following a 50% surge in early May, Ethereum completed its Bull Flag pattern. The 200-day EMA matches the boundary below the flag, further supporting bullish setups.
Furthermore, the growth of underlying solidity has increased the possibility of a positive crossover between 50 and 100 days of EMA.
Based on Bull Flag Pattern and Fibonacci levels, a potential breakout could result in a 33% rally of $3,577. This represents a strong upside, surpassing the 78.6% Fibonacci level at $3,436.
The Ethereum bounce from the 200-day EMA, marked with long tailed candles on Sunday, reflects strong investors’ confidence. However, short-term integration has shown to reduce the trendlines for RSI.
As Ethereum maintains sideways movement, falling RSI lines reveals hidden bearish divergence. Below the 38.20% Fibonacci level, the 50-day EMA could be retested at $2,213.
ETH derivatives predict breakout rally
Despite integration, bullish sentiment in the derivatives market continues to be built. Ethereum’s public interest increased 2.73% to $329.3 billion, according to Coinglass data.
The short-term pullback of the funding rate is 0.0034%. This suggests minor DIP in bullish momentum. However, the recent 12-hour liquidation has wiped out $17.84 million in a bearish position, enhancing the bullish environment.
Overall, Coinglass data supports bullish narratives, indicating the expected continuation of the upswing.
Analysts Find Ethereum Blockchain Deployment Back to 2021 Level
In a recent tweet, Crypto analyst Ted Pillows highlighted a significant increase in development activities on the Ethereum blockchain. According to his post, the daily smart contract development has returned to the level it was last seen in the 2021 Bull Run.
This reflects a significant increase in builder activity on the Ethereum network, indicating strong chain momentum. As activities on the chain intensify, the rise in development could support gatherings at ETH spot prices.