Ethereum (ETH) Price Breaks Out of Downtrend, Signaling the Onset of Its Rising Trend

After actively acting on the resistance level around $2,650 for the better part of last week, the Ethereum (ETH) price has successfully broken out and signaled the onset of its rising trend.

After actively encountering resistance around $2,650 for most of last week, the Ethereum (ETH) price has signaled the beginning of its rising trend with a breakout.

Since the August 5 crypto crash, the Ethereum price has established a strong support range between $2,223 and $2,320.

The large-cap altcoin, with a fully diluted valuation of around $328 billion and a daily average traded volume of about $16.2 billion, pumped over 3 percent in the past 24 hours to retest a crucial resistance level of around $2,748.

While BTC price teased $69k again since July, ETH price managed to outshine BTC for the first time in several weeks.

Several factors continue to favor Ethereum over Bitcoin ahead.

Anticipated Altseason Soon

After an impressive rally since early 2023, Bitcoin price action is expected to be outpaced by the altcoin market in the coming months.

The crypto cash rotation has already begun favoring Ethereum, which is being accepted globally as a digital asset, thanks to its deep liquidity and rising utility in the web3 space.

More investors are betting on a major altseason pump, catalyzed by ETH price retest to its all-time high.

Rising Demand for Whale Investors

The Ethereum market has registered palpable growth in the past few weeks, fueled by rising demand from whale investors.

Last week, the US spot Ether ETFs, led by BlackRock’s ETHA, registered the third week of net cash inflow since the July approval by the US SEC.

After a $78.89 million cash inflow last week, the US spot Ether ETFs have now reduced the cumulative total net cash inflow to about negative $479.9 million.

Favoring Technical Analysis (TA)

From a technical analysis perspective, Ethereum’s price is poised for an impressive rebound in the near term.

According to veteran trader Peter Brandt, Ethereum price has signaled a breakout from a daily falling trend, which is being formed through a symmetrical triangular pattern.

Brandt also noted that Ether’s price, against the US dollar, signaled a rebound from a potential head and shoulders (H&S) pattern in the daily time frame. Notably, Ether’s price against Bitcoin signaled a double bottom, coupled with a rising divergence on the Relative Strength Index (RSI).

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