Can Ethereum Crack $4,000? On-Chain Activity and Price Pattern Suggest So

Since the completion of the fourth Bitcoin halving on April 19th, the Ethereum Price has maintained a steady recovery evidenced by the new higher low formation in daily charts. While the broader market is still limited by the growth in Ether, the coin price managed to rebound from $2870 to $3335 recording a 17% growth. An analysis of the daily chart shows the ETH price is close to a pivotal point amid the development of a falling wedge pattern.

Also Read: Best Time To Buy Longs In Bitcoin (BTC) and Ethereum (ETH): QCP Capital

Ethereum Price to Regain Momentum If Buyers Break This Resistance

Ethereum Price| Tradingview

The short-term outlook for Ethereum suggests a bearish trend, as evidenced by the price movement within the descending trendline of a falling wedge pattern. However, the chart setup is known for recruiting bullish momentum and resuming the prevailing rallies.

With an intraday gain of 2.16%, the ETH price shows a bullish breakout from the weekly resistance of $3280. Sustaining this breakout bolsters buyers to rechallenge the pattern’s resistance trendline.

According to on-chain data analyzed by Lookonchain, prominent investor James Fickel has been actively accumulating Ethereum (ETH) while maintaining a long position on the ETH/BTC trading pair. 

Lookonchain’s tracking reveals that Fickel has borrowed 2,301 Wrapped Bitcoin (WBTC) valued at approximately $119.75 million from the decentralized finance platform Aave. This borrowed WBTC has then been traded for 41,947 ETH at an exchange ratio of 0.055, coinciding with the launch of the Bitcoin ETF on January 10.

James Fickel(@jamesfickel) continues to buy $ETH and long ETH/BTC trading pair.

He has borrowed 2301 $WBTC($119.75M) from #AAVE and exchanged it for 41,947 $ETH at 0.055 since the #Bitcoin ETF launched on Jan 10.

And has spent 35M $USDC to buy 10,952 $ETH at $3,196 in the past… pic.twitter.com/v6b8C1z1GZ

— Lookonchain (@lookonchain) April 28, 2024

Moreover, Fickel has allocated 35 million USDC to purchase 10,952 ETH, each at the price of $3,196 over the last three days. This significant investment underscores a bullish sentiment toward Ethereum, a higher potential for buyers to break the wedge pattern 

This potential breakout will signal the end of the prior correction and allow the price to regain value above $4000.

Technical Indicator

• Relative Strength Index: The daily RSI slope rises above 50% indicating the positive market sentiment in returning to assets.
• BB indicator: The upticks in the lower boundary of Bollinger Band bolster buyers with additional support to lead the recovery trendline.

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