TECH

Growing Institutional Interest in Ethereum Signals a Possible $5,000 Target Based on Technical Analysis

Crypto analyst Jelle has forecasted that Ethereum could reach $5,000 by March.

The analyst referenced a long-term technical pattern and noted significant institutional buying. This prediction aligns with ETH’s impressive 51.9% gain over the past year.

Market data indicates that Ethereum saw a 2.4% increase over the past week, although it faced a 1.9% drop in the last 24 hours. The asset’s 30-day performance reflects a slight 0.4% decrease, suggesting a phase of consolidation ahead of a possible breakout.

In his latest market analysis, Jelle pointed out a bullish pennant formation that has been in development for nearly four years. This technical setup, characterized by converging trendlines following a significant upward surge, usually heralds substantial price increases when confirmed by heightened buying activity.

Market watchers have noticed that wallets allegedly associated with Trump’s inner circle have been accumulating Ethereum, coinciding with wider discussions on government cryptocurrency stockpiling. This institutional interest provides additional foundational support to the technical analysis.

The cryptocurrency’s price action demonstrates resilience in maintaining its yearly gains despite the latest market fluctuations. Although short-term movements reveal some uncertainty due to the 24-hour decline, the long-term uptrend remains robust, as indicated by the significant annual performance.

Technical analysts highlight that the completion of local low sweeps serves as another bullish signal, suggesting that the market has eliminated weaker positions in anticipation of a potential upward movement.

Nonetheless, ETH is still down more than 31% since reaching its all-time high in November 2021. While BTC has successfully surpassed its ATH multiple times recently, ETH has yet to display similar strength.

Ethereum technical analysis points to potential $5,000 target as institutional interest grows - 1
Source: CoinGecko



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