Ethereum Price Eyes $4,000 as Falling Wedge Breakout Nears

During Thursday's U.S. market hours, the crypto market witnessed a slight downtick as pioneer digital asset Bitcoin plunged over 2%

The crypto market witnessed a slight downtick on Thursday during U.S. market hours, with pioneer digital asset Bitcoin plunging over 2%. This selling pressure stalled the recovery momentum of top altcoins like Ethereum price and hinted at the continuation of market consolidation. However, the latest on-chain data highlighted the investors’ confidence in Ether’s long-term rally, suggesting a potential recovery in the near future.

Key Highlights:

ETH’s Long-Term Strength vs. Short-Term Volatility

According to the latest on-chain insights from IntoTheBlock, the breakdown of the holder by time frame indicates that the majority of ETH supply is held by long-term holders as opposed to short-term holding. These investors, with an average holding period of 2.4 years, show confidence in ETH’s future potential.

However, ETH's short-term movement struggles to maintain a sustained recovery due to the lack of short-term participants, the emergence of Layer 2 solutions, and alternative Layer 1’s. This fragmentation in market attention could scare off speculative traders but may not affect the HODLers.

Another data from Spotonchain reveals that Donald Trump's DeFi project, World Liberty Financial, made a substantial investment by purchasing 2,972 ETH for 10 Million USCD. This purchase brought their total ETH holdings to 70,157 ETH ( valued at around $235M).

ETH Price Eyes $4,000 as Falling Wedge Breakout Nears

Over a three-day rally, the Ethereum price showcased a significant upswing from $3,054 to $3,325, registering a growth of 9.1%. This recovery in the daily time frame chart teases a bullish breakout from a falling wedge - a pattern that drove a 2 months correction in ETH.

Theoretically, the pattern's two converging trendlines indicate a diminishing bearish momentum, which bolsters buyers for a crucial breakout of the next recovery. If the ETH coin offers a daily candle closing above the downsloping trendline, the buyers could drive a high-momentum rally to the $4,000 peak.

However, if the breakout fails, the coin price could prolong the current consolidation and potentially revisit the $2,800 level.

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