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- The triple bottom pattern suggested a potential breakout as ETH eyed the $3,500 resistance.
- Exchange outflows and RSI levels indicated a possible bullish move, but network growth remained flat.
Ethereum (ETH) is on the verge of a significant breakout as traders have spotted a triple bottom pattern forming in 2024, reminiscent of its 2021 rally.
With ETH trading at $2,314, up 0.31% in the past 24 hours at press time, this setup has sparked optimism that Q4 could deliver substantial gains.
Can the triple bottom lead to a bullish reversal?
The triple bottom is a well-known pattern, often indicating a bullish reversal. In 2021, Ethereum followed a similar structure before embarking on a massive rally.
If Ethereum maintains this trajectory, a break above $3,500 could further boost investor confidence.
To confirm the bullish momentum, Ethereum needs to break through critical resistance levels. The $2,800 mark is the first major hurdle, and breaking above it could pave the way for a test of $3,500.
Source: X
What about ETH strength?
Technical indicators have shown a promising outlook for Ethereum. The Relative Strength Index (RSI) was at 45.63 at press time, indicating that ETH is neither overbought nor oversold.
Bollinger Bands (BB) indicated that ETH was trading in a tight range, with potential volatility on the horizon.
A break above the upper band could trigger a strong rally, making these indicators crucial to watch in the days ahead.
Source: TradingView
Do trade flows indicate a recovery?
Trade flow data showed mixed signals but hinted at a potential bullish move at press time.
Exchange inflows increased by 0.82% in 24 hours, reaching 349.05k ETH at press time, signaling some selling pressure as traders move coins to exchanges.
However, exchange outflows increased by 0.77% in 24 hours to 328.83K ETH at press time, showing that many investors were still holding their coins off exchanges.
If outflows continue to increase, it could indicate reduced selling pressure and growing confidence in ETH’s upside potential.
Source: CryptoQuant
Network Growth: Is Ethereum Expanding?
Ethereum network growth has remained relatively slow, with 27,181 new addresses added recently and a growth rate of 0.24% over the past 24 hours as of press time.
The neutral signal suggests that while the Ethereum network is stable, it is not experiencing an increase in new user activity.
Source: Santiment
Read Ethereum (ETH) Price Prediction 2024-2025
Will the fourth quarter be the scene of a breakthrough?
Ethereum is at a crucial juncture. While technical patterns like the triple bottom, RSI, and Bollinger Bands point to a potential breakout, network growth and mixed exchange flows suggest some caution.
With volatility expected, the fourth quarter will likely determine whether Ethereum can break through key resistance levels and regain the bullish momentum that drove its 2021 rally.
