Ethereum price has risen over the past few days, helped by continued exchange-traded fund (ETF) inflows and the recently announced ceasefire between the US and Iran. $ETH The token was trading at $2,220 on Sunday, up 30% from this year’s lowest level.
Ethereum price is sending mixed signals
The 3-day chart shows that Ethereum price has been giving mixed signals this year. On the positive side, the coin has formed a large inverted head-and-shoulders pattern, which is a common bullish reversal sign in technical analysis. In this case, it’s on the right shoulder.
Meanwhile, the coin has formed a bearish flag pattern consisting of a vertical line and an ascending channel. We have already completed the formation of the flagpole and are now entering the rising channel. In most cases, this pattern often leads to a strong sell.
Ethereum is below all moving averages and below the supertrend indicator, a common bearish sign. Therefore, if the bear flags come into play, the pair could see a strong bearish break, possibly to a year-to-date low of $1,750. Below that level, there is further downside and a potential drop to $1,500.
On the other hand, if the inverted head-and-shoulders pattern holds out, the coin is likely to rebound to the next key resistance level at $3,000.
$ETH Price Chart / Source: TradingView
There are some key bullish factors for Ethereum, but risks remain
One of the key catalysts for Ethereum was American investors buying Spot $ETH Signs are that the ETF started accumulating tokens last week. spot $ETH After shedding assets over the past three weeks, the ETF added more than $187 million in inflows last week. These funds currently hold approximately $12.96 billion in assets.
Meanwhile, Tom Lee continued to accumulate tokens. His company BitMine currently holds over 4.8 million Ethereum tokens, which are currently valued at over $10.6 billion. Currently, the plan is to continue accumulating tokens with the aim of reaching 6 million tokens.
This accumulation led to a significant decrease in supply on exchanges. Supply decreased from more than 17.85 million units to 12.1 million units. Decreasing supply on exchanges indicates that investors continue to purchase tokens.
Further data shows that the network’s stablecoin supply has surged to $176 billion, while trading volume has surged to more than $1.1 trillion. Its stablecoin addresses have rapidly increased to over 6.3 million, and this number is likely to continue.
The main short-term risk facing Ethereum is the potential for high market volatility if peace talks between the US and Iran nearly fail and war resumes.
Another major challenge is the continued growth of Hyperliquid. This has led it to process higher transaction volumes than all DEX platforms on Ethereum.
