Is a parabolic move to $4,000 possible?

TL;DR

Ethereum (ETH) is up around 6% on the week, with analysts predicting potential moves above $4,000. Bullish metrics for the chain and positive sentiment on platforms like Telegram support the thesis for an upcoming resurgence. Is it time for ETH to shine?

The cryptocurrency sector has been torn apart in recent days, with Bitcoin (BTC) briefly surpassing $73,500 and Dogecoin (DOGE) hitting a six-month high of nearly $0.18.

The second largest digital asset in terms of market capitalization, Ethereum (ETH), is also in the green, albeit with marginal gains. It is currently trading around $2,700, which means a weekly increase of 6%.

ETH price, Source: CoinGecko

It seems that several analysts believe that ETH has yet to gain momentum and has even overtaken BTC. One person who shares this thesis is user X Crypto General, who believes the asset’s price looks poised to break through the $2,800 resistance mark and “start a parabolic move towards the $4,000 target.”

Another user with the nickname X Wolf also chimed in, explaining that a “three-month ascending triangle that formed after the August scare is about to end.” The crypto enthusiast sees this as a precursor to a peak above $4,000.

Last but not least, Phoenix predicted a “hated rally” for ETH in the near future. However, the analyst did not outline any particular targets:

I hope you are not stuck because we are somewhere here compared to a year ago$ETH it’s still absolutely behind, but it’s going to be a hated show when it actually ships

Insert your hopi and increase your goals#Ethereum https://t.co/zCy6XoXabi pic.twitter.com/h9RpHojnuY

— Phoenix (@Phoenix_Ash3s) October 30, 2024

Bullish indicators

Some metrics on the chain also suggest that the asset price may head north in the near term. Data from CryptoQuant shows that net ETH exchange flow has been predominantly negative over the past month, indicating a shift from centralized platforms to self-custodial means. This reduces immediate selling pressure and could be seen as an optimistic factor.

Also, Telegram’s sentiment on Ethereum has shifted towards positivity. According to IntoTheBlock, over 30% of ETH-related messages on the app are positive, while only 2% are negative. The vast majority (67%) are neutral.

Optimism on social channels can create a sense of momentum, attracting more retail investors, which can lead to short-term price increases.

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