Ethereum’s price has been stagnant this month, with investors remaining cautious. However, several fundamental and technical catalysts could potentially drive the price higher.

Ethereum Price Stalls Amid Cautious Investors

As of Tuesday, Ethereum, the second-largest cryptocurrency, was trading at $2,700, marking a 35% drop from its highest level in November. This price is notable, as it coincides with where Ethereum was trading on the same date in 2024.

Catalysts for Potential Price Growth

Several factors could contribute to an increase in Ethereum’s price in the coming months. Firstly, data indicates that spot Ethereum ETFs have continued to attract inward investments from Wall Street investors, with daily inflows in 7 out of 10 days this month. The total inflows since inception have risen to $3.15 billion.

Secondly, data from CoinGlass shows that Ethereum balances in centralized exchanges have decreased significantly in recent days, with a current total of 15.34 million coins. This decline in balances suggests that many ETH holders are choosing to hold their coins in self-custody rather than selling.

Thirdly, there are signs that the Ethereum network is gaining ground on Solana in terms of decentralized exchange transactions. In the last 24 hours, protocols on Ethereum handled over $2.28 billion, compared to Solana.

Ethereum Price Technicals

Short-term charts suggest that Ethereum’s price may experience a strong bearish breakdown due to the formation of a death cross pattern. However, a closer examination of longer-term charts points to a potential price rebound. The weekly chart shows that the accumulation and distribution indicator has continued to rise, signaling that investors are accumulating the token.

The chart also indicates the formation of an ascending triangle pattern, which is composed of an ascending trendline and a horizontal resistance. A bullish breakout occurs when the two lines converge. Additionally, Ethereum has formed a megaphone pattern, another bullish sign.

However, it is essential to note that the bullish breakout may take time, as it is on the weekly chart. Signals on a weekly chart can take months or over a year to complete.

Potential Price Targets

A bullish breakout above the upper side of the triangle at $4,061 could lead to further gains, potentially reaching the all-time high of $4,945, followed by $5,000.

While these signs are promising, it is crucial to remember that investing in cryptocurrencies carries risks, and it is essential to conduct thorough research before making any investment decisions.

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