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- The triple bottom pattern suggested a potential breakout as ETH eyed the $3,500 resistance.
- Currency outflows and RSI levels pointed to a possible bullish move, but network growth remained flat.
Ethereum [ETH] is poised for a significant breakout as traders see a triple bottom pattern emerging in 2024, reminiscent of the 2021 rally.
With ETH trading at $2,314, up 0.31% in the past 24 hours at the time of writing, this setup has led to optimism that the fourth quarter could deliver significant gains.
Can the triple bottom trigger a bullish reversal?
The triple bottom is a well-known pattern, often indicating a bullish reversal. In 2021, Ethereum followed a similar structure before starting a massive rally.
If Ethereum continues this trajectory, a breakout above $3,500 could further boost investor confidence.
To confirm the bullish momentum, Ethereum must break through critical resistance levels. The $2,800 mark is the first major hurdle, and crossing it could pave the way for a $3,500 test.
Source:
What about the power of ETH?
Technical indicators showed promising prospects for Ethereum. The Relative Strength Index (RSI) at the time of writing was 45.63, indicating that ETH is neither overbought nor oversold.
The Bollinger Bands (BB) indicated that ETH was trading within a tight range, with potential volatility on the horizon.
A breakout above the upper band could trigger a strong rally, making these indicators crucial to watch in the coming days.
Source: TradingView
Are currency flows pointing to a rally?
The stock market flow data showed mixed signals but was leaning towards a potential bullish move at the time of writing.
Inflows to the exchanges increased by 0.82% in 24 hours, reaching 349.05K ETH at the time of writing, indicating some selling pressure as traders move coins to exchanges.
However, outflows from the currency markets increased by 0.77% in 24 hours to 328.83K ETH at the time of writing, showing that many investors were still keeping their coins off the exchanges.
If outflows continue to rise, it could indicate reduced selling pressure and growing confidence in ETH’s upside potential.
Source: CryptoQuant
Network Growth: Is Ethereum Expanding?
Ethereum’s network growth has remained relatively slow, with 27,181 new addresses recently added and a growth rate of 0.24% in the last 24 hours up to the time of publication.
The neutral signal suggested that while Ethereum’s network is stable, it is not seeing an increase in new user activity.
Source: Santiment
Read Ethereum’s [ETH] Price forecast 2024–2025
Will the fourth quarter deliver the breakthrough?
Ethereum is at a crucial moment. While technical patterns such as the triple bottom, RSI and Bollinger Bands point to a possible breakout, network growth and mixed currency flows indicate some caution.
With volatility expected, the fourth quarter will likely determine whether Ethereum can break key resistance levels and recapture the bullish momentum that powered the 2021 rally.
