Ethereum's rebound strength, technical analysis suggests a bullish signal

The cryptocurrency market is filled with volatility, but recent price movements of Ethereum (ETH) show interesting patterns. The rapid recovery from last week’s decline has led to a growing bullish sentiment among market participants.

Rapid Recovery After Decline Aligns with Historical Patterns

Ethereum experienced a decline of over 16% last week, but recent price action is noteworthy. After temporarily dropping to $3,504, it is now trading around $3.09K. Over the past 24 hours, it has fluctuated by -0.72%, demonstrating resilience in bouncing back from this correction phase.

Looking at past chart data, since August of this year, Ethereum has rebounded at least three times from support levels between $3,400 and $3,800. Interestingly, each rebound has been followed by a sharp increase, suggesting this trend may continue in the future.

Institutional Investors’ Entry as a Bullish Catalyst

Market analyst Dan Gambardello has analyzed Ethereum’s risk-reward profile and points out the potential for significant gains. He cites the acceleration of asset accumulation by major institutional investors as a key factor. BitMine Immersion alone holds a strong position of 2.8 million ETH, symbolizing a bullish stance from institutions.

Furthermore, Ethereum’s recent price movements resemble the pattern seen in August-September 2020, when after a major decline, it formed a range-bound market before transitioning into a sustained upward trend. If the same scenario repeats, a steady upward momentum could be expected over the coming weeks or months.

ETFs and Staking Products as Catalysts

Fund managers like Bitwise and Shares21 are applying to the SEC for ETFs that include Ethereum and Solana with staking features. If approved, these products could change the nature of returns from crypto ETFs and generate new investment demand.

If these factors align, Ethereum could reach new all-time highs in the fourth quarter of this year. Tom Lee of Fundstrat has set a target of over $5,500 if market conditions are favorable, and a genuine demand beyond meme-driven hype could support higher prices.

Market Outlook

Signs that Ethereum is gaining momentum include rapid recovery from declines, repeated rebounds from support levels, accumulation by institutional investors, and the potential approval of ETFs. When comparing the current correction to past patterns, it is highly likely that the next bullish phase is approaching.