3 Signs Ethereum price is getting ready to recover to $6k.

Ether (ETH), Ethereum's native token, is on track to post its first October loss since 2018, falling 5.40% on the month to reach $2,475 on October 27.

The decline stems from intensifying competition from new smart contract platforms like Solana (SOL) and a quick market reaction to Ethereum-based spot ETFs.

However, signs are mounting that Ether may be poised for a turnaround, with several indicators pointing to a potential recovery towards $6,000.

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Ether holds the last support before the 160% gain

Ether is currently holding above the crucial support level at around $2,400. This price coincides with ETH's multimonth bullish channel pattern downtrend, which saw historically sharp price recoveries, including the cryptocurrency's 160%-plus recovery between October 2023 and March 2024.

If the $2,400 support remains intact, Ethereum may target the upper boundary of the channel in the coming months, near the $6,000 mark.

Adding to the bullish outlook, Ether's weekly Relative Strength Index (RSI) has broken out of the historical support zone, which is in line with ETH's test of the lower trend line of the channel.

ETH's price movements have rebounded from similar support levels in the past, resulting in higher moves.

$1.3B in ETH comes out of Coinbase

According to data shared by CryptoQuant Analyst Burak Kesmeci, Ethereum's recent surge from Coinbase reflects a wave of institutional interest.

On October 25, an anonymous entity withdrew 543,000 ETH worth more than $1.3 billion from a crypto exchange in one hour, one of the largest movements of Ether in the past three months.

Such large-scale transfers are seen as signs of institutional activity. When major players move large volumes of cryptocurrency exchanges, this usually indicates a shift to long-term holding strategies, possibly indicating bullishness.

Kesmeci cited another transaction from August 2024 that indicated the massive flow of Ether may have been the forerunner of the price rally, where 681,100 ETH worth $1.8 billion left the Coinbase exchange.

This is the second such outflow in three months, which strongly suggests the possibility of growth in institutional demand.

Ethereum key reversal with top competitors

Ethereum's potential to rise to $6,000 is likely to receive further pressure from its top rivals, Bitcoin (BTC) and Solana, as they rally.

From a technical perspective, Ether is currently trading around Bitcoin's ever-rising trendline support, which coupled with the oversold RSI could lead to a significant price correction in the coming months.

Analyst CryptoAvails also noted that ETH/BTC's rise from the previously mentioned trendline support coincided with the beginning of the “altcoin season”, a phase in which alternative cryptocurrencies outperformed Bitcoin.

“Strengthening ETH with BTC will lead to the rise of the altcoin,” X user added.

“Altcoins are currently very cheap and will soon forget these levels.”

Ethereum with Solana provides additional hints on capital rotation

Ethereum's next biggest rival, Solana, has grown by approximately 900% in the SOL/ETH trading pair since June 2023. Since October 27, SOL/ETH has hit a new record high of 0.0710 ETH.

However, the pair's weekly RSI jumped above 70, indicating that it is overvalued. In other words, Solana can be pressured down by going up too fast on the ether.

Related: The real flip? The price of Solana has set a new record on Ethereum

A bearish divergence in SOL/ETH, coupled with falling RSI and volumes, suggests weakening buying pressure and a price correction. Historically, overbought conditions have seen SOL/ETH fall to the 50-week EMA, suggesting a 35% decline is possible.

The combination of these capital flows for Ethereum in 2016 It will create a favorable environment for a push towards the $6,000 target by the end of early 2025.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.