Ethereum’s Bear Market Phase May Soon End, Thanks to Strong Fundamentals and Technicals
Ethereum’s price has taken a hit recently, entering a bear market. However, there are signs that a rebound could be on the horizon.
One of the key factors supporting Ethereum’s potential recovery is the bullish flag pattern visible on its daily chart. This pattern suggests that the price may soon bounce back.
Additionally, companies like BitMine have been accumulating Ethereum tokens. BitMine’s total holdings now exceed $6.6 billion. The company’s founder, Tom Lee, remains optimistic about ethereum’s future and plans to continue buying more tokens.
other major players, such as SharpLink and The Ether Machine, also hold significant amounts of Ethereum. huobi’s founder has even pledged to start a $1 billion Ethereum treasury company.
Ethereum’s ability to generate income through staking is another advantage. According to StakingRewards, Ethereum offers a staking yield of 3%. This feature makes it more attractive than Bitcoin to some investors.
Ethereum ETFs have also performed better than their Bitcoin counterparts. This week, Ethereum ETFs saw outflows of just $232 million, compared to Bitcoin’s $1.2 billion.
The futures market also indicates a potential Ethereum price rebound. The funding rate has stayed above the neutral point, suggesting that investors expect the price to rise.
While Ethereum’s price has fallen from $4,963 to $3,900, it has formed a bullish flag pattern. If the price stays within the flag’s descending channel, it could retest the year-to-date high of $4,963 and even reach $5,000. However,a drop below the channel’s lower side could lead to further declines,potentially to $3,000.
