Over the past several days, Ethereum (ETH) has incurred some serious upwards momentum that has allowed it to outperform Bitcoin and put a significant amount of distance between its current prices and its recent lows of $120.
This momentum has come about concurrently with the ongoing recovery seen across the aggregated crypto market, and analysts are now noting that there is a myriad of factors that could ultimately send ETH surging over 100% in the near-term.
Ethereum Keeps Climbing as Technical Strength Builds
At the time of writing, Ethereum is currently trading up just under 3% at its current price of $142.30, which marks a notable climb from its recent lows of $126 that were set earlier this week.
ETH has been outperforming Bitcoin as of late, and today it is trading up 2% against its BTC trading pair. Ethereum’s ongoing recovery largely stems from Bitcoin’s current price action, which is widely being characterized as bullish by analysts and investors alike.
While zooming out and looking at the cryptocurrency’s price action over the past 30 days, it grows clear that both bulls and bears are currently at an impasse, as it is currently trading just a hair below where it was in early-December – unable to garner any decisive momentum.
CryptoBirb, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he believes ETH could be on the verge of a major rally, which could be sparked by a breakout of the descending wedge he references below.
“$ETH/USD nice wedge on weekly. IF breaks out and successfully retests breakout then wedge target is 275-300$ zone,” he bullishly explained.
$ETH/USD nice wedge on weekly
IF breaks out and successfully retests breakout then wedge target is 275-300$ zone pic.twitter.com/uDy6hlWzks— Adrian Zduńczyk, CMT (@crypto_birb) January 5, 2020
ETH’s Fundamental Strength Could Bolster Potential Rally
In addition to currently boasting bullish technical strength, it is important to note that Ethereum also has been building significant fundamental strength over the past few months, primarily due to the ever-so popular DeFi trend.
John Lilic, a member of ConsenSys, explained in a recent tweet that the massive amount of ETH tokens locked in DeFi is continuing to grow, meaning that the circulating supply is continuing to decrease.
“The past 3 months $eth locked in #defi grew from 2.25m to 3mm +33%. If trend continues it’ll be ~3.99m by end of Q1. The past 3 months $eth price dropped from $176 to $139 -22%. If trend continues it’ll be $106 by end of Q1. Shorting means believing both trends will continue,” he noted.
https://twitter.com/JohnLilic/status/1214153167706841088?s=20
If Ethereum does break out of the descending wedge and begins a massive rally, investors will likely be more prone to enter fresh longs and spot positions due to its strong fundamentals, thus further perpetuating the rally.
Featured image from Shutterstock.