Ethereum (ETH) recorded its biggest three-day return of 2024, surging 21% after President-elect Donald Trump was announced as the winner of the US presidential election. The rally also broke the altcoin’s indirect resistance of $2,800 and a 96-day long trend low consolidation range.
Ethereum 3-day chart. Source: TradingView
With the cryptocurrency community anticipating renewed strength, Ether has sent a strong buy signal based on its historical setup for 2023.
Ethereum reflects a bullish setup for 2023.
In 2023, Ethereum showed a downward trend between the second and fourth quarters, followed by a cumulative range (green box on the chart) in the third and early fourth quarters. If ETH breaks out of its accumulation range, it will cross the downward resistance trend line, indicating a trend reversal.
The final strength confirmation was completed after the altcoin posted a daily composite close above the 50-day, 100-day, and 200-day EMA levels. Following this confluence, Ethereum rose 129% by the end of the first quarter of 2024, reaching a yearly high of $4,100.
Ethereum 1-day analysis chart. Source: TradingView
Ether has now demonstrated the correct bullish setup. The chart below highlights that altcoins experienced similar declines between Q2 and Q4, with an extended accumulation phase in Q3. The past few days have seen a repeat of each bullish conjunction in 2023. ETH broke the downtrend line, broke out of its long-term accumulation range, and secured a daily close above the 50-day, 100-day, and 200-day EMA levels.
Ethereum 1 day chart. Source: TradingView
If the price action also repeats, Ethereum is expected to range between $6,000 and $6,500 by the first quarter of 2025.
Related: Ethereum Holder Turns $38,000 into $30 Million After 8 Years
Ethereum ETF welcomes $132 million in inflows.
While institutions have been aggressively accumulating Bitcoin through spot BTC ETFs, the sentiment on Ethereum has not been the same. However, ETH’s recent rally has regained the attention of smart money, with $132 million in net Ethereum ETF flows seen between November 6 and November 7.
Data from Farside shows a stark contrast between the past few days and two weeks ago, with ETH seeing outflows of $63.2 million as recently as November 4th.
Ethereum ETF flow chart. Source: Farside.co.uk
Meanwhile, venture capitalist Henrique Centieiro believed that Ethereum was now “entering scarcity mode.” Centieiro lists several reasons for his claim, indicating that tight supply and increased demand will trigger a massive rally in altcoins.
With over 42.6% of ETH locked up in staking contracts and exchange reserves reaching an all-time low in 2024, investors are expected to reap positive dividends from Ether in the long term.
Related: Ethereum hits $3.2K as ETH ETF inflows turn positive.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.