The recent Ethereum price rally has allowed the asset to reclaim the 50-week moving average near 3,300 dollars, marking a possible technical floor. Analysts like StockTrader_Max and intelligence firms like Santiment highlight that this movement, backed by strong institutional accumulation, could trigger an imminent rise in the coming weeks.
Recent data from TradingView confirms that the ETH/USD pair bounced strongly from the 2,800 dollar support, achieving a 7% ascent in the last day. This crucial movement has allowed recovering the 50-week exponential average, a technical indicator that historically precedes gains between 97% and 147% for the asset. In parallel, the firm Santiment reported aggressive accumulation by large investors, who acquired almost one million ETH valued at 3.15 billion dollars during the last three weeks. Additionally, flows into spot ETFs recorded 177 million dollars in inflows on Tuesday, the highest figure since late October, evidencing the return of institutional appetite.
Are We Facing the Start of a Vertical Rise Toward New All-Time Highs?
This behavior is not new for the second-largest cryptocurrency in the market, as similar patterns occurred between October 2023 and March 2024. In previous cycles, closing above the 50-period weekly moving average acted as a definitive catalyst to initiate sustained bullish runs. The importance of this technical milestone lies in validating the end of a five-month downtrend against Bitcoin, projecting a solid structural recovery. Likewise, the Coinbase Premium Index has turned positive, indicating that demand from US investors is returning strongly after a month of apathy, reinforcing the thesis of a confirmed market bottom.
If bulls manage to convert the 3,500 dollar zone into firm support, the path toward 4,000 and subsequently 5,000 dollars would be technically cleared. Analysts like CyrilXBT underscore that holding the 50-week average is vital to increase the odds of this positive scenario for the blockchain sector. On the other hand, a 100% rally from current levels would transform general market sentiment, attracting back retail capital that has been selling. However, whales with balances exceeding 100,000 ETH continue accumulating, suggesting that big players anticipate significant appreciation and are positioning aggressively before the move accelerates.
The current scenario presents an ideal setup where smart money accumulation coincides with long-term trend reversal technical signals. If history repeats itself and buying momentum remains constant, Ethereum could be on the verge of doubling its value in the coming months. Consequently, attention is now focused on the breakout of key resistances, while institutional investors continue absorbing available supply, paving the way for what could be one of the most explosive moves of the year.
