Ethereum price is poised for further recovery as analysts have identified hidden bullish divergence that could enhance the previous rally. The pattern which indicates momentum shifts has it that, contrary to the present slump in the price, ETH could be on course to rise above its previous record high of $4,850.
If this pattern holds, Ethereum could be positioned for a climb to $8,000, a move that would likely trigger an altcoin rally.
Hidden Bullish Divergence Signals Ethereum Price Rally to $8,000
Analyst Javon Marks shared on the X platform that Ethereum price has confirmed a Hidden Bullish Divergence, which often signals a continuation of an existing uptrend. The pattern indicates that despite a recent pullback, the underlying momentum remains strong, suggesting a recovery in ETH price.
This technical formation typically appears when an asset’s price makes a higher low while its relative strength index (RSI) forms a lower low. Such a setup often leads to a continuation of the previous uptrend. With Ethereum price already displaying this pattern, analysts believe the next major resistance level to watch is $4,850. A successful breakout above $4,850 could clear the way for Ethereum price to reach $8,000.
Source: X
Ethereum Drops Below Realized Price
Additionally, Ethereum recently fell below its realized price of $2,054 for the first time since February 2023. The realized price represents the average price at which ETH tokens last moved on-chain, providing insights into the overall market sentiment and profitability of holders.
On-chain data from Glassnode revealed that Ethereum’s market value to realized value (MVRV) ratio dropped to 0.93, indicating an average unrealized loss of 7% for ETH holders. Historically, dips below the realized price have often preceded market recoveries as long-term investors accumulate during these periods.
However, a recent CoinGape price analysis revealed that Ethereum price might see further downside if selling pressure continues to rise. Whale transactions to exchanges have intensified, raising concerns about a potential ETH drop below the $1,500 mark. However, a bullish diamond pattern suggests that ETH could rebound if it breaks key resistance levels.
Momentum Could Trigger Altcoin Rally
Notably, a rally above $4,850 may take Ethereum price to $8,000 and possibly trigger an altseason. Majority of the altcoins replicate the movement of ETH especially when the price is rising sharply.
Moreover, such a rally will bring institutional and retail investors into the market, therefore, a multiplier effect may be observed across other cryptos. This would be good for altcoins as many of them are yet to recover from the effects of recent pullbacks.
Analysts have identified the $1,600 to $1,900 range as a potential support zone for Ethereum price. Recent data from Glassnode shows that around 600,000 to 700,000 ETH were accumulated near the $1,900 level.
If the top altcoin maintains this support and gains momentum, the resistance at $2,200 could be the next hurdle. A successful breakout from will set the stage for an altcoin rally to $4,850, confirming the path to $8,000.
The post Analyst Reveal How Ethereum Price $8,000 Move Could Be In Play appeared first on CoinGape.
