coindesk.com
Ethereum has recently been making waves for the right reasons, providing bullish cues to its native token, ether ($ETH). Now, the cryptocurrency's price chart reveals a compelling pattern reminiscent of the set-up in bitcoin ($BTC) before it chalked out a record rally last month.
Ether's three-line break chart, which filters out day-to-day noise and erratic price movements, shows the cryptocurrency's eight-month corrective trend, characterized by lower highs and lower lows, has ended and the broader uptrend from the October 2023 lows near $1,500 has resumed.
Such breakouts often trigger a bullish cascading effect on price by attracting new buyers and forcing out sellers that restricted price rallies during consolidation.
Bitcoin witnessed a similar breakout in mid-October, signaling a rally to the then-record highs above $73,000. $BTC has since surged 45% to over $96,000, according to data source TradingView and CoinDesk.
While traders track price patterns to gauge trend strength and changes, they don't always work as intended and fundamental factors can single-handedly make or break trends.
That said, the recent activity on the ethereum network supports the bullish case in $ETH. The number of "blobs" posted on the Ethereum network by the layer 2 protocols surged in November. Posting blobs incurs fluctuating fees paid in ether, which are burned like regular transaction fees, taking out $ETH's supply from the market.
Meanwhile, mainstream investor interest in the token is rising. On Friday, the nine spot ether ETFs listed in the U.S. accumulated $332.9 million in inflows, the highest single tally since inception, according to Farside Investors.
Read more: This Chart Indicates Bitcoin May Be Headed for Record Highs Above $73K