An analysis suggests that Ethereum (ETH) is likely to surge soon. Veteran trader Peter Brandt predicted that if ETH breaks through its current rising wedge pattern, the price could expand to $3,800-$4,800.
Ethereum has been maintaining a steep upward trend since starting weekly trading at $1,807 on May 7th. Its 7-day return is approaching 38%, which is the highest weekly increase since December 2020. This is interpreted as a signal of strong buying pressure in the short term.
Notably, ETH has surpassed the realized price of $1,900, which is the average purchase price for long-term investors. This means many investors are now in a position to realize profits, and it is considered an indicator supporting strong market confidence.
Currently, a significant portion of buying pressure is occurring on Binance. A substantial amount of Ethereum spot and derivatives trading is taking place through Binance, suggesting that liquidity concentration across exchanges is being maximized through Ethereum's rise.
However, caution about short-term adjustments is necessary. The taker buy-to-sell ratio in the futures market has dropped below 1, indicating that some investors are turning cautious. This could signal potential selling pressure and the possibility of a consolidation period before further increases.
Experts view these price movements as significant, reflecting Ethereum's strengthened on-chain fundamentals and institutional trader inflows. The market also anticipates that the pro-cryptocurrency stance potentially emerging under Trump could strengthen investment sentiment towards major assets.
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