Ethereum Price Forecast as ETH Forms a New Trendline – Can it Rally to $4,000?

Ethereum has remained within a narrow range over the past few days, struggling to surpass the $3,400 threshold. Speculations suggest that the significant outflows from the recently launched Ether spot ETFs have obscured Ethereum's price moves.

However, despite the bearish sentiment, Ether has formed a new trendline, suggesting a potential bullish reversal. Can Ethereum overcome the bears to reach $4,000?

The following analysis explores Ethereum's price action and its next possible direction.

Ethereum Recent Price Action

Ethereum's price hovered around $3,400 between July 15 and 24. Unfortunately, it suddenly dropped to $3,095.However, this decline was short-lived, as buyers quickly intervened on July 26, pushing the price back up.

Since then, ETH has maintained a slow and steady move. The 4-hour chart shows a pattern of higher highs and lows. Ethereum currently trades around $3,355, with a decline of less than 1% over the past day.

Ethereum appears resilient despite the broader market struggle. Is this the calm before the storm, or is Ether shaping up for a major breakout? Let's find out from the analysis below.

Experts Predict End to Ether ETF Outflows: Could This Spark an ETH Price Rally?

Since its conversion to a spot ETF, Grayscale's Ethereum Trust has lost over $1.7 billion, about 18% of its initial value. This significant outflow negates the inflows from the other funds.

Some market participants believe these outflows might have contributed to Ether's stalling price rally.

However, according to a July 30 X post by Mads Eberhardt Steno Research's senior analyst, Grayscale's Ether ETF outflows will probably slow down this week.

The Ethereum ETF net outflow is yet to subside, but it is likely that it will happen this week. When it does, it's up only from there. pic.twitter.com/mJqbcyUTp5

- Mads Eberhardt (@MadsEberhardt) July 29, 2024

In another tweet, Eberhardt compares this situation to the spot BTC ETF launch, noting that Bitcoin ETF outflows slowed after eleven trading days. So, he believes the Ether ETF outflows will follow a similar trend.

There is, of course, a net outflow from the Ethereum ETFs when Grayscale's primary Ethereum ETF is depleting at an unprecedented rate.

So, what happens once we move past the peak of these Grayscale outflows? Take a guess. pic.twitter.com/hbDzsqfc2n

- Mads Eberhardt (@MadsEberhardt) July 29, 2024

Another trader, Evanss6, supports this view; he highlighted that Bitcoin's price jumped 92% in 50 days after its ETF outflows stopped. A reduced ETF outflow could renew investor optimism and sentiment on Ethereum, driving a price recovery.

Have a look at the two ETF launches side by side

BTC ETF (0 on x-axis = Jan 10th):
-bottomed on Day 12 (Trading Day 7)
-bottom occurred at ~21.5% off local peak
-bottom occurred at cumulative Grayscale outflows of ~13.2%
-proceeded to rip ~92% in 50 days

ETH ETF (0 on x-axis =... pic.twitter.com/jsmcYu0UD0

- Evanss6 (@Evan_ss6) July 29, 2024

Ethereum Forms Bullish Trendline: Technical Indicators Point to Potential Rally

Ethereum has formed a bullish trendline, indicating a possible significant price increase. Given ETH's historical performance, this pattern is interesting.

The last time Ethereum formed a similar trendline, its price surged by over 26%. If history repeats itself, ETH could replicate this impressive gain.

This potential rally has many investors excited about Ethereum's short-term prospects. Moreover, several technical indicators support this bullish outlook.

The Moving Average Convergence Divergence (MACD) is currently above its signal line and showing green histogram bars, suggesting increased buying pressure.

The Relative Strength Index (RSI) also stands at 61, indicating bullish momentum. Also, Ether is below 70 and not yet overbought, suggesting room for more growth before a potential resistance.

Furthermore, the SuperTrend indicator is flashing a buy signal. This setup often identifies the start of new trends, adding weight to the bullish case for Ethereum.

These technical signals paint an optimistic picture for ETH. Reaching $4,000 marks a significant increase for Ethereum, but more buying pressure is needed.

While we consider Ethereum's potential, it's also worth exploring other opportunities in the crypto market.Among the numerous opportunities, Pepe Unchained (PEPU) poses as one of the best low-cap Ethereum alternatives.

Pepe Unchained: A Revolutionary Meme Coin Raising Millions in Presale

Pepe Unchained (PEPU) is making headlines in the meme coin market, emerging as a potential 10x crypto for early investors. Pepe Unchained has raised over $6 million in its presale, demonstrating investor interest in the project.

Unlike most meme coins, Pepe Unchained aims to introduce valuable use cases by building its own Layer-2 network on Ethereum. This innovative approach has caught the attention of investors and influencers.

Features of Pepe Unchained

Also, PEPU's layer-2 blockchain promises to be 100 times faster than Ethereum, offering lower fees and quicker transactions. But that's not all; Pepe Unchained also offers a unique double staking" feature.

Investors can stake their PEPU tokens to earn rewards, with estimated returns of 302% annually.This attractive yield has drawn significant interest from the crypto community, and more than 529 million tokens have already been staked on the platform.

The project's roadmap includes plans for listings on decentralized and potentially centralized exchanges. 10% of the total PEPU supply is set aside for liquidity.

Moreover, Pepe Unchained has gained traction on social media. Its Twitter following has grown to almost 9,000, while the Telegram channel has over 4,100 members. This growing community reflects the increasing interest in the project.

Crypto influencers have taken notice of Pepe Unchained. Analysts like Crypto Gains and the 99Bitcoins YouTube channel have praised PEPU as a project with significant growth potential.

Many are watching as the presale gains momentum to see if Pepe Unchained can deliver on its promises.

Currently, PEPU tokens trade at $0.0087693, and the price will increase as the presale progresses through different stages. These progressive stages will allow early buyers to earn substantial rewards upon the token's exchange listing.

The project team claims security is their top priority, so they've engaged two auditing companies to ensure the safety of Pepe Unchained's smart contracts.

This commitment to safety sets it apart from many other meme coins. With its unique features and growing support, it's positioning itself as a top alternative in the meme coin space.

The post Ethereum Price Forecast as ETH Forms a New Trendline - Can it Rally to $4,000? appeared first on The Tech Report.