Following recent headwinds in the general crypto market, Ethereum faced a notable price pullback toward key support levels such as the $3,000 mark. Despite the sharp price correction, ETH’s weekly chart has flagged an optimistic trend that could rekindle its upward momentum toward higher levels in the short term.
Weekly Chart Shows Key Structure For Ethereum
Ethereum’s recent moves have triggered uncertainty and fears among investors and traders as the altcoin eyes previous support levels. However, current developments in its chart show that ETH might be gearing up for a major rally shortly, potentially reaching a new all-time high.
Market expert and trader Jonathan Carter has predicted ETH’s path to a new all-time high, citing the emergence of a Symmetrical Triangle pattern in the weekly time frame. This classic technical pattern has historically signaled significant price movements following a breakout, indicating the start of an uptrend again.
While examining Jonathan Carter’s weekly chart of ETH, it shows that the triangle pattern has been developing for over 2 years. The development comes amid waning optimism in the broader cryptocurrency market, with ETH showing signs of prolonged volatility.
After investigating the triangle formation, the expert highlighted that price action is becoming tighter within the pattern, reflecting a big move in the next two to three months. However, this move hinges on ETH’s ability to sustain this bullish structure and breakout on the upside.
Once ETH breaks above the formation, Carter claims the development may fuel the much-anticipated price rally toward new highs, placing his targets at $4,850, $6,000, and $7,500. He also expects the move to kickstart an altcoin season, suggesting that ETH will spearhead this cycle’s alt season.
ETH Adoption Grows Amid Bearish Market Conditions
The general crypto market has shifted toward a bearish sentiment, and ETH’s price has fallen sharply. Despite slight worries about cryptocurrency prices as the weekend drew to a close, Ethereum network activity has skyrocketed to new highs. This rise demonstrates the increased interest in Ethereum’s ecosystem, which is being driven by the popularity of Layer-2 solutions, DeFi protocols, and NFT marketplaces.
Santiment, a leading market intelligence, and on-chain platform reported that Ethereum’s network exploded with an incredible 206,290 new addresses between January 24 and 25. According to Santiment, this was the largest spike in network expansion since October 22, marking a 27-month high.
The surge in daily wallet creation coincides with a period of negative crowd sentiment toward ETH as it underperforms compared to other altcoins. Nonetheless, given its dominance in the DeFi sector and staking options, Ethereum continues to lead the entire landscape in non-empty addresses.
In the past, such significant growth has fueled notable upside moves for ETH. Should this trend persist, the development could bolster ETH’s upward momentum, allowing it to revisit key resistance levels.
