Ethereum (ETH), the second largest crypto by market cap, has continued to rally with the price climbing above $3,700 today. This performance on the day marks the eighth consecutive green candle for ETH on a daily basis. The coin has surged by over 25% over this period. 

Following the recent rally, ETH is also trying to breach a 5-year technical formation that has been hindering upward price movement. A break out from the trend could signify further gains for Ethereum. But, where is the next price target for ETH? 

ETH Pumps Over 4% Pushing Price Past $3,700

After topping above $3,650 on Friday July 18 amid growing institutional demand, the rally of Ethereum slowed down. The price even dropped to  $3,490 briefly on Saturday with the momentum seemingly losing steam. However, ETH has rallied today with the price pushing above $3,700 to a 7-month high. According to the daily chart on TradingView, Ethereum is currently trading at $3,705, marking a 4.09% surge on the day. 

Looking at the chart above, ETH has recorded 8 consecutive green candles showing strong bullish momentum. Over this period, the coin has surged by 25.97% after climbing from $2,950 price level. This impressive surge shows strong buying across the current market. 

Additionally, ETH’s Directional Movement Index (DMI) shows a strong bullish trend. This indicator, which usually consists of three lines; the Average Directional Index (ADX), the -D and +D, shows the direction and strength of the trend. 

The ADX, shown by the Magenta line sits at 41.23 highlighting strength in the current uptrend. Normally, a reading above 25 shows a strong trend thus confirming Ethereum is trending upwards. The tandem between the steady rise in ADX alongside the price also suggests that the ongoing rally is not just a short-term spike but rather a part of a sustainable rally. 

Ethereum’s +DI (positive directional indicator) is also trending above the -D (negative directional indicator) showing that buyers are in control in the current market. As per the chart above, the +D sits at 48.11 way above the -D which sits at 6.12. The wide gap between the +D and the -D also suggest strong buying pressure and minimal selling activity in the market. 

Analysts Predict the Next Stop for ETH 

According to an analysis by crypto analyst Carl Moon, Ethereum is attempting to make a breakout above a massive technical formation. The coin has been facing a  descending resistance since July 2022 but with the recent price action, it could break out from the resistance. 

“Ethereum is trying to break above this massive descending resistance during the weekend!” Carl Moon wrote. 

As per Carl Moon’s analysis, a breakout above the descending trendline could result in a rally towards $8,000. As seen on the chart, this would mean a 119.79% rally from the current price levels. 

However, in a subsequent post, the analyst predicts that ETH could reach $3,830 in the short term. His short-term prediction stems from yet another technical formation, the symmetrical triangle, in Ethereum’s price action.

Another crypto analyst Ted Pillows is also bullish for Ethereum. Ted predicts that the coin could reach $4,000 this coming week following its recent rally.

“Ethereum to $4,000 next week,” Ted shared. 

Altcoin season could also be around the corner as ETH and other altcoins rally as Bitcoin compresses, according to Ted Pillows. However, market participants must keep watch of the market performance as we head into the fourth week of July.