After many months of weakness, ether is finally starting to look like an asset that may be preparing for a larger upward movement. According to Ali Charts, the technical situation of ETH has improved so clearly that the market may be closer to the next wave of increases than many assume.
Ali Charts believes that ETH is starting to transition from a phase of weakness to a phase of recovery.
In the background, there are technical and on-chain signals supporting the bullish thesis.
Additionally, purchases are being continued by Bitmine, which is aggressively increasing its exposure to ethereum.
ETH looks better and better.
According to Ali Charts, ether is currently moving in a rising triangle formation on the weekly chart. The recent drop to around 1800 USD was supposed to coincide with important support from this structure, and the rebound from this level was not coincidental.
The analyst also points out the behavior of on-chain indicators. In his opinion, the drop in MVRV below 0.8 has historically been a buy signal for ETH, and the fact that it occurred precisely at the time of testing key support strengthens the entire bullish narrative.
Additionally, for the first time in many months, the SuperTrend indicator was supposed to move to the positive side, which may indicate that the market dynamics is finally beginning to return in favor of buyers.
Key levels for ether
However, Ali Charts emphasizes that a mere rebound from support does not yet signify a full-blown bull market. To confirm a trend change, ETH must break through several important resistance zones.
In his analysis, he refers to the levels:
2356 USD,
2647 USD,
3639 USD,
4632 USD
Only the successive overcoming of these barriers would confirm that ether is indeed entering a phase of a stronger upward trend.
The fundamentals also support the bulls.
Not only the chart works in favor of ETH. Purchases are still led by Bitmine, which has increased its holdings by over 117,000 ethers in the last 48 hours. The company clearly shows that it believes in the long-term potential of this network and continues to implement a plan to accumulate as much as 5% of the total supply of ETH.
Additionally, Ethereum continues to benefit from the effects of the Merge. The inflation of ether remains significantly lower than that of bitcoin, which supports the argument for the relative scarcity of the asset in the long term.
As of today, it's still difficult to speak of a certain beginning of a new bull market for Ethereum. But one must admit this: the combination of technical signals, on-chain data, and the behavior of large players looks significantly better today than it did a few weeks ago.