Crypto: ETH Ready To Soar Again? Here’s The Indicator!
The crypto market is always changing. Investor decisions depend on how they see risk and reward. Bitcoin is struggling, but Ethereum has a signal that is exciting traders. Analyst Doctor Profit says ETH has a great risk-reward balance. This suggests a big rally is coming. Technical analysis and investor buying could put the asset at a turning point.
Ethereum's price is above its 200-week EMA. Doctor Profit notes this has been a strong support level in the past. It was important during the 2022 bear market. Now, ETH is 18% above this average. This is like the setup before past bull runs.
The analyst posted on X on February 24, 2025. He said the potential upside to $8,000 - $10,000 is a 200% gain. The risk of a price drop is only 20%. There are also two chart patterns present. These are an ascending channel and an ascending triangle. These patterns often mean a bullish breakout is coming. The market might push ETH to new record highs.
Even with the Bybit hack shaking the crypto market, Ethereum has stayed strong. Data from Glassnode shows investors are buying a lot of ETH around $2,632. There was a big jump in buying at $3,150, where 1.22 million ETH were bought.
CryptoQuant data shows the taker buy-sell ratio is up for ETH. This ratio measures buying pressure. It is down for Bitcoin. In the past, this signal meant Ethereum would do better than BTC. This suggests the altcoin could do well soon.
Technical and basic factors point to prices going up. However, the market can change fast. If the price closes below $2,600, the bullish view could end. Traders might become careful. If the price breaks above $3,150, a rise to $4,000 looks more likely.
There is a lot of liquidity there. Investor feelings and the crypto market will play a big part. Ethereum seems to have positive momentum now. It is not clear if this will turn into a new bull cycle. Investor caution might slow the asset down.