Ethereum surges 2.4% as 2021 bull run pattern repeats

Ethereum's price has surged today, with a 2.4% increase and a 17% rise in volume. Analysts attribute this rally to a chart pattern that mirrors its 2021 bull run, suggesting a potential repeat of history with a significant price surge later this year. The analysis focuses on a specific sequence: a “Dead Cat Bounce” followed by a “Final Retest” of a key support level. In 2021, Ethereum followed this pattern, retesting support near $250 before embarking on an explosive rally that pushed it past $4,000 by the year’s end. Currently, Ethereum is retesting a major support zone around the $2,000 mark, indicating a similar dynamic.

Crypto analyst Cipher X provides further insight by examining Ethereum’s daily chart, which shows key moving averages. The 50-day exponential moving average (EMA) is nearing a crossover with the 200-day EMA, a technical event closely watched for trend signals. While a 50-day EMA crossing below the 200-day EMA often signals bearish momentum, Cipher X notes that Ethereum’s recent price action differs from regular patterns seen in Bitcoin. For instance, after golden crosses in 2024, ETH posted gains of approximately 35% within four weeks, including a rally above $4,000 in early 2024.

Market data supports a cautiously optimistic outlook. As of press time, Ethereum was trading at $2,491.92, up by 2.46% on the day. Market capitalization increased by 2.49% to $300.82 billion. Technical momentum indicators show that the Relative Strength Index (RSI) currently stands at 50.54, above the neutral midpoint of 50, indicating a balance between buying and selling pressure. The RSI’s recent rebound from oversold levels near 30 signals renewed demand in the market. Meanwhile, the Moving Average Convergence Divergence (MACD) remains negative but shows declining bearish momentum. The narrowing MACD histogram red bars may signal an impending bullish crossover, which traders typically interpret as a sign of upward price movement.

In summary, Ethereum's recent price surge is driven by a chart pattern that mirrors its 2021 bull run, with analysts pointing to a potential repeat of history. The analysis focuses on a specific sequence of price movements and key support levels, while technical indicators such as the RSI and MACD show renewed demand and declining bearish momentum. The 50-day EMA nearing a crossover with the 200-day EMA adds further support to the bullish outlook, with Ethereum's recent price action differing from regular patterns seen in Bitcoin. Overall, the market data and technical analysis suggest a cautiously optimistic outlook for Ethereum's price in the coming months.