Ethereum (ETH) price shows signs of recovery: Analysts 100% Rally eye potential

TLDR

Ethereum price dropped to a low of $1,910 and rose above $2,350, starting a wave of recovery. Technical indicators suggest that ETH may move higher if it clears the $2,680 protection zone. Ethereum's relaunch shows similarities to the pattern before the 178% price rally from October 2023. On-chain metrics like MVRV Z-Score and STH-NUPL indicate that ETH may have bottomed out. Some analysts predict that if historical patterns repeat, ETH could rally 100% or more before the end of the year.

Ethereum, the second-largest by market capitalization, is showing strong signs of recovery after suffering a sharp price drop. The price of the digital asset bounced back from a low of $1,910, breaking above the $2,350 resistance zone, sparking optimism among investors and analysts.

Technical analysis suggests that Ethereum (ETH) may be poised for further gains if it manages to clear key resistance levels. The price is currently trading below $2,640 and below the 100-hourly simple moving average, with a high momentum line forming support at $2,440 on the hourly chart. If ETH manages to break through the $2,680 resistance zone, it could trigger a sustained upward move.

The current rally is very similar to the pattern seen in October 2023, which preceded the 178% price rally. This similarity has led some analysts to speculate that there may be another significant rate hike in the coming months.

On-chain metrics are also giving encouraging signs for Ethereum's price outlook. Market Value to Real Value (MVRV) Z-Score, a key indicator for identifying market tops and bottoms, fell to 0.52. Historically, when this measure has reached such lows, it has often signaled market lows and previously seen significant price increases.

Another indicator on the chain is Short-Term Holdings-Net Unrealized Profit/Loss (STH-NUPL) entered capital territory, indicating the spread of fear in the market. Paradoxically, such extreme fear has marked the beginning of price rallies in previous market cycles.

Based on these technical and chain indicators, some analysts are making bold predictions about Ethereum's potential price movement. There is speculation that ETH could double in value before the end of the year, with some predictions suggesting it could reach $4,000 or more.

From a fundamental perspective, an expected US Federal Reserve rate cut could boost demand for Ethereum and other cryptocurrencies. Traders looking for higher returns from risky assets may turn to the crypto market, moving away from low-yielding options like government bonds.

The situation parallels March 2020, when the market rebounded in response to the Covid-19 market crash following the Fed's intervention. Current market data adds to the possibility of three rate cuts by 2024, creating a favorable environment for crypto assets.

For Ethereum in particular, the next major hurdles on the upside include resistance levels at $2,680 and $2,720. A clear break above these levels could pave the way to the $2,860 and $2,920 resistance zones. Some bullish estimates suggest that ETH could approach the $3,000 mark if the bullish momentum continues.

If Ethereum fails to maintain its current momentum and falls below key support levels, especially the $2365 zone, it could trigger another decline, pushing the price towards the $2,250 or even $2,120 level.