Technical analysis is the study of charts and patterns to predict price movements. Right now, Ethereum’s charts suggest that it could be in a late accumulation phase, known as Zone 5. In previous cycles, this zone was often followed by strong price rallies.
Ethereum has recently moved above important technical indicators, such as its 50-day moving average. This shows growing strength in price momentum. Some analysts say that if Ethereum can stay above $2,500 and finally break above $2,650, it could begin a new rally toward $3,000 and beyond.
At the same time, many traders are still betting against Ethereum. If the price rises quickly, these traders may be forced to buy back their positions, leading to what is known as a short squeeze, which could cause the price to spike.
