Ethereum Eyes Potential Rally to $7,346 Amid Market Volatility and Long-Term Holder Uncertainty

Ethereum (ETH) has been on a strong upward trend lately. Its price jumped from $2,400 to $3,700 in just a few weeks. This surge has caught the eye of many traders and investors, sparking optimism about what’s next for ETH.

Analyst VentureFounder believes Ethereum could be gearing up for an even bigger rally—potentially reaching $7,346. That’s a bold prediction!

However, not everything is smooth sailing. Ethereum's foundation shows some signs of instability. There are concerns about how long-term holders (LTH) are behaving and the overall market volatility. While a major breakout seems likely, it’s wise to stay cautious as Ethereum navigates these critical times.

According to VentureFounder, Ethereum is forming a “cup and handle” pattern. This triangle consolidation pattern often signals future price gains. If Ethereum can break above the $3,800 resistance level, it could aim for that $7,346 target—an increase of over 97% from its current price. Sounds promising, right?

But here’s the catch: the pattern isn’t fully confirmed yet. Ethereum’s path forward depends on its ability to push past that $3,800 resistance. Until that happens, Ethereum remains in a consolidation phase. A breakout could trigger further price increases, so traders are keenly watching for any signs of upward movement.

On a broader scale, Ethereum's momentum looks positive. Still, the behavior of long-term holders is a concern. The Liveliness indicator tracks whether these holders are selling or accumulating Ethereum. If Liveliness increases, it means long-term holders might be cashing out, which could signal a bearish trend.

On the flip side, if Liveliness decreases, it shows that long-term holders are holding onto their Ethereum. This would reinforce a bullish outlook.

Right now, uncertainty around long-term holders is a significant issue. If Liveliness continues to rise, it may indicate that they are selling off their assets, which could put downward pressure on the price. Such selling could destabilize the rally and delay any potential price surge. So, the actions of long-term holders are critical to watch.

Currently, Ethereum is trading at about $3,700, just shy of that crucial $3,800 resistance level. If ETH breaks through this barrier, it could kick off a rally toward $7,346, as the cup and handle pattern suggests. That’s a potential 97% increase—definitely a bullish sign!

For Ethereum to achieve significant price gains, it’s essential to establish strong support above $3,800. A bounce off this level is key for ETH to surpass $4,000, which is the current high for the year. This would build confidence among retail holders and attract institutional investors.

However, if Liveliness keeps climbing and long-term holders continue to sell, that bullish scenario might be at risk. A prolonged selling period could lead to a price correction, pushing Ethereum back toward the lower $3,327 range. Such a downturn would challenge the current bullish outlook and could delay the anticipated rally.