The crypto market showcases a bullish turnaround following the Federal Reserve’s decision to maintain a steady interest rate cut at 4.25-4.5%. The renewed buying pressure supported Bitcoin price to reclaim the $105k mark and Ethereum price to hit $3200. However, the ETH relief rally could develop to sustained recovery as onchain activity bolsters for a breakout from a 50-day correction.
Key Highlights:
- Over the past two months, the Ethereum price has witnessed a steady correction within a falling wedge pattern
- The Ethereum price is less than 1% short from a bullish breakout of the wedge pattern.
- ETH daily chart shows $3,000 and $2,800 as key support levels.
Ethereum Price Eyes Breakout as Active Addresses Jump 37%
In the last two days, the Ethereum price jumped from $3,054 to $3,264, accounting for a 7% rise. While the Federal Reserve’s steady rate policy bolstered this upswing, the ETH network witnessed significant growth in onchain activity.
According to IntoTheBlock data, Ethereum’s active addresses have skyrocketed by 37%, reaching 670,000 last week, surpassing their March 2024 high of 400,000. This higher address count suggests growing user engagement, higher transaction activity, and a strengthening network effect.
Daily Active Addresses | intotheblock
The increase in onchain activity combined with the recent price jump suggests recovering bullish momentum for a higher rally.
Ethereum Price Nearing Major Breakout
The Ethereum price correction in the daily chart shows the formation of a falling wedge pattern. The chart setup is characterized by two covering trendlines, which drive a temporary pullback in price to regain exhausted bullish momentum.
Since mid-December, the ETH price has resonated multiple times from these trendlines, indicating the pattern’s credibility and influence on future movement. With an intraday jump of 5%, the coin price is poised to challenge the overhead trendline.
A successful flip of the resistance into support will drive a 14% surge to $3,720, followed by $4,100.
ETH/USDT – 1d Chart
However, if the broader market uncertainty persists, the ETH coin struggles for a breakout and drives a prolonged downfall below $3,000.
Also Read: Illinois Proposes Strategic Bitcoin Reserve With Minimum 5 Years Hold
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