Ethereum (ETH) Bullish Signals: A Long-Term Price Increase?

Ethereum (ETH) price is experiencing a resurgence, sparking optimism among investors and analysts. Ethereum is poised for potential gains with the price rising above key moving averages (MAs) and breaking through critical resistance levels.

Highlighting key observations from the recent market performance, this article explores the bullish signals emerging for Ethereum (ETH) in the wake of its price resurgence.

As the second-largest cryptocurrency by market capitalization, Ethereum's performance is closely watched by investors and analysts alike. Recently, ETH has shown promising signs of recovery, sparking optimism in the crypto community.

After a turbulent period that saw its price drop to $2,154 a few days ago, Ethereum has quickly regained ground. In the past 24 hours, ETH's price has risen by over 4%, bringing it back to levels above $2,400. This rapid recovery is accompanied by several bullish signals.

According to market experts, the 8-hour chart on TradingView reveals a pending buy signal, which is indicated by the Stochastic oscillator. Furthermore, the Relative Strength Index (RSI) is also showing a bullish divergence from the price, suggesting a potential momentum shift toward the upside.

Adding to the positive technicals, Ethereum has broken above a downward trendline that has been in place since late August, signaling a possible reversal. The cryptocurrency is also reclaiming its 200-week moving average, a key level that could further solidify the recovery if the positive momentum continues.

However, it's worth noting that a failure to maintain this upward trajectory could lead to a retest of lower support levels between $2,100 and $2,300.

As Ethereum's price continues to rise, approaching crucial resistance levels, crypto analysts are presenting a technical analysis scenario. A consolidation above $2,850 would confirm a breakout from the current downtrend, setting Ethereum on a path toward the $3,000 mark, a level not seen since early August.

Despite the recent gains, which saw ETH rise by nearly $700 in a short span of time, the trading volume has dropped by 15% over the past 48 hours, which could be a potential warning sign of limited buying pressure.

On longer time frames, Ethereum is still trading at a loss, with the cryptocurrency down by almost 4% over the past week and nearly 9% over the last 30 days.

Beyond the immediate price movements, Ethereum's upcoming upgrade, which will involve based rollups, presents a major opportunity for the network. These rollups, which alter Ethereum's incentive structure, could dramatically increase demand for ETH and create new revenue streams for validators.

Currently, validators earn a yield of about 3% on average, but with the implementation of based rollups, these returns could increase significantly. Validators may also be required to burn or spend ETH for certain rollups, further boosting demand.