Ethereum price today: $3,450
- Ethereum on-chain indicators signal rising buying pressure over the weekend.
- Investors are potentially rotating from Bitcoin to Ethereum following a decline in its market dominance.
- ETH could rally 30% after overcoming the $3,400 neckline resistance level of a Head-and-Shoulders pattern.
Ethereum (ETH) is up over 4% on Monday following increased weekend buying pressure and investors potentially rotating away from Bitcoin. The top altcoin could stage a 30% rally if it maintains bullish pressure above the $3,400 key level.
Ethereum investors flip bullish with weekend buying pressure
Ethereum staking flows switched to inflows for the first time in seven days on Friday and stayed positive over the weekend with net inflows of 59K ETH. If the trend continues, it could lead to rising ETH scarcity and a subsequent price increase.
ETH Staking Flows | IntotheBlock
The switch to buy-side is also evident in Ethereum exchange-traded funds (ETF) recording net inflows of $91.3 million on Friday after six days of consecutive net outflows, per Coinglass data.
Investors also staged similar buying pressure across spot exchanges, pushing ETH exchange flows during the weekend to net outflows of ~130K ETH worth about $435 million.
 - All Exchanges-638681525647123356.png)
ETH Exchange Netflows | CryptoQuant
According to a Monday note by QCP analysts, investors could be rotating from Bitcoin to ETH and other altcoins, considering BTC dominance fell from 62% to 59% in the past week. The analysts noted that the trend will continue if BTC continues rejecting the $100K key level.
Meanwhile, Michael Nadeau of the DeFi Report said in a recent issue that ETH may be following its last bull cycle price pattern.
"In the last cycle, Bitcoin broke its all-time high in Q4-20. It wasn't until Q1-21 that ETH broke its all-time high [and] went on to do a 5.4x in the first 4 months of the year," Nadeau wrote.
Ethereum Price Forecast: ETH set for 30% rally after overcoming $3,400 resistance
Ethereum is up over 4% following $62.88 million in ETH futures liquidations in the past 24 hours, per Coinglass data. Liquidated long and short liquidations accounted for $28.17 million and $34.71 million, respectively.
ETH retested the $3,400 neckline resistance of a Head-and-Shoulders pattern over the weekend and finally broke above it on Monday.
ETH/USDT daily chart
If ETH sustains an extended move above the $3,400 resistance, it could surge above its yearly high resistance of $4,093 with a 30% rally to $4,522. To complete such a move, ETH has to overcome the $3,732 key resistance level.
The Relative Strength Index (RSI) and Awesome Oscillator (AO) momentum indicators are trending upwards above their neutral levels, indicating rising bullish pressure.
A daily candlestick close below the $3,000 psychological level will invalidate the bullish thesis and send ETH to find support at the $2,817 level.
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Its native currency Ether (ETH), is the second-largest cryptocurrency and number one altcoin by market capitalization. The Ethereum network is tailored for building crypto solutions like decentralized finance (DeFi), GameFi, non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that function without the need for a central authority. To make this easier, the network leverages the Solidity programming language and Ethereum virtual machine which helps developers create and launch applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automates agreements between two or more parties. Basically, these codes self-execute encoded actions when predetermined conditions are met.
Staking is a process of earning yield on your idle crypto assets by locking them in a crypto protocol for a specified duration as a means of contributing to its security. Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism on September 15, 2022, in an event christened “The Merge.” The Merge was a key part of Ethereum's roadmap to achieve high-level scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS reduces the barrier of entry for validators by leveraging the use of crypto tokens as the core foundation of its consensus process.
Gas is the unit for measuring transaction fees that users pay for conducting transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin consolidates after a new all-time high of $99,500
Bitcoin remains strong above $97,700 after reaching a record high of $99,588. At the same time, Ethereum (ETH) edges closer to breaking its weekly resistance, signaling potential gains. Ripple holds steady at a critical support level, hinting at continued upward momentum.
Sandbox hits fresh yearly high as on-chain metrics reach record highs
The Sandbox continued its rally and hit a fresh yearly high of $0.8680 in the early Asian session on Monday after surging over 121% last week. However, at the time of writing, SAND retraces and stabilizes around $0.7600.
Why is Dogecoin price down today?
Dogecoin (DOGE $0.4243) is retreating after reaching its highest levels since May 2021, suggesting a growing profit-taking sentiment among traders following Donald Trump’s win.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.