Ethereum Price Prediction: ETH Crosses $3.1K, Another 50% Gain Next?

• The metrics suggested that Ethereum was undervalued.
• Market indicators gave ambiguous signals about an upcoming bullish rally.

Ethereum [ETH] It returned to normal on May 6 when its price crossed $3.1 thousand again. While the token crossed psychological resistance, it also consolidated within a bullish pattern.

A break above the pattern could allow ETH to reach new highs in the coming weeks.

Ethereum Price Prediction

Last week was not the best for investors, as the price of the king of altcoins plummeted to $2.8 thousand. However, the token gained bullish momentum on May 1 as its price rose steadily.

According CoinMarketCap, ETH price increased by more than 1.55% in the last 24 hours. At the time of publication, it was trading at $3,144.11 with a market capitalization of over $377 billion.

Meanwhile, World of Charts, a popular crypto analyst, recently posted a tweet highlighting a falling edge pattern on the ETH chart.

The token began consolidating within the pattern since early March. According to him https://twitter.com/WorldOfCharts1/status/1787111325874741384?t=2Cd72b61_lbBzx3QDfEQBQ&s=19The correction phase for ETH ended as it headed towards the upper trend line of the falling wedge.

A successful breakout of the falling wedge pattern could lead to a 45% to 50% price increase in the coming weeks. Predicting Ethereum price, it could also surpass its March high if a bullish rally occurs.

Is Ethereum Ready for a Rally?

AMBCrypto then analyzed Ethereum’s on-chain metrics to see if they supported the possibility of a breakout.

Notably, ETH’s network-to-value ratio (NVT) recorded a drop after a sharp rise. A drop in the metric means that an asset is undervalued.

Our analysis of Santiment data pointed out a few other bullish metrics. For example, ETH’s MVRV index improved over the past week. Their network growth was also high.

This meant that more new addresses were created to transfer the token, reflecting high activity.

However, the latest version of Lookonchain https://twitter.com/lookonchain/status/1787324001653789087 pointed towards a liquidation. According to the tweet, a whale sold 7k ETH, which, at the time of this publication, was worth more than $22 million, according to AMBCrypto Converter.

This seemed bearish as it hinted that the whale expected a price drop.

To better understand whether a breakout above the falling wedge pattern was possible, AMBCrypto analyzed the daily chart of ETH.

Read Ethereum [ETH] Price prediction 2024-25

According to our analysis, the Relative Strength Index (RSI) of ETH recorded a rally and had a value of 49.7, suggesting that the chances of an upward price movement were high.

However, the money flow index (MFI) supported the bears as it was below the neutral mark of 50.

This is an automatic translation of our English version.