Ethereum Price Prediction: ETH Breakout Puts $3K in Focus

Ethereum (ETH) has jumped by nearly 8% in the past 24 hours, following a stable inflation print in the United States today.

The price just broke past the $2,600 mark for the first time since January this year and could keep rising to $3K if the rally continues.

Trading volumes have jumped by 36% in the past day as a result, rising to nearly $23 billion. This figure accounts for more than 6% of the asset’s circulating market cap, indicating growing buying pressure.

Inflation data in the United States came in line with analysts’ forecasts for August, with prices advancing by 3.4% in the past 12 months.

Traders largely ignored that rate hike odds went up from 68% to 86% following the release of the report, probably as they had already priced in this scenario.

Concerns about the macroeconomic backdrop could now take the back seat, while other pressing matters concerning the crypto space, like the approval of the Clarity Act and other sector-specific tailwinds, could drive the next leg up for Ethereum.

Key Ethereum On-Chain Metric is About to Scream “Buy”

Data from CoinGlass shows that over $420 million in short positions have been wiped out in the past 24 hours as a result of today’s strong price move. Wiped-out ETH short positions are currently outpacing Bitcoin’s, accounting for half of that total, while the top crypto saw only $100 million in shorts evaporating during this same period.

A strong decline in oil prices could also be influencing today’s move, as crude retreated from $104 to $100.

Today’s price uptick has pushed the MVRV Ratio, an on-chain metric we have been keeping track of for months, to the nearest it has been to the zero line since January this year as well.

As we have mentioned in previous Ethereum price prediction articles, the last four times that this metric has jumped above zero, it has marked the beginning of fresh bull markets for the top altcoin.

At -1.4%, we could already safely say that we could be at the earliest stage of a new bullish cycle. Our long-term target for ETH during this cycle is $5,400, meaning a 107% increase based on today’s price.

ETH Eyes Rally to $3K If Today’s Uptick Keeps It Above $2,500

Turning to the daily chart, ETH just broke above the upper bound of a flag pattern that we identified in our latest analysis. This is a continuation setup that tends to emerge after a strong price movement.

This breakout needs to hold throughout the entire session to be fully confirmed. If it does, a rally to $2,800 seems highly likely. Meanwhile, our mid-term target for the token would be the $3K area.

A bull market has already started from a technical standpoint, as the price of the token rose above the 200-day exponential moving average (EMA).

What we need now is that positive momentum accelerates. Now that there’s some degree of certainty concerning the macro backdrop, investors could be getting ready to jump back into the crypto market with the expectation that rising adoption in the United States could set the stage for a massive rally in the next 6 to 12 months.