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Following an intense week that rocked the cryptocurrency market, Ethereum ($ETH) seems to be stabilizing, and some analysts are resuming their bullish outlook. Top market analyst Benjamin Cowen claims that Ethereum could reach $5,000 in a blink if it makes its next significant move. The second-largest cryptocurrency has recovered well from a steep decline that briefly drove it below the $3,900 support zone, and it is currently trading back around $4,200.
Long-term reversal
As $ETH tapped its 200-day moving average (black line), which has historically functioned as a long-term accumulation zone, buyers jumped in forcefully, resulting in a quick recovery from last week's sell-off. The structure appears promising from a technical point of view. The RSI may be about to change momentum, as it has recovered from its mid-range level of 47.
The recent rebound volume spikes, meanwhile, point to rekindled institutional interest that may be waiting for Ethereum's next leg higher. Notwithstanding recent volatility, the 50-day (orange) and 100-day (blue) moving averages are still in a bullish configuration, maintaining the overall trend. According to Cowen, the correction was a normal aspect of Ethereum's consolidation stage prior to its subsequent growth. He claimed that $ETH is just resetting, doing what it always does before breaking out.
Rapid $ETH flip
If market sentiment changes, the move to $5,000 might occur sooner than most people anticipate. Several key factors are supporting this outlook: Ethereum's network activity is still strong, stake participation is still increasing, and the adoption of layer-2 scaling is growing quickly.
These are all signs of strong underlying demand. In line with Cowen's blink prediction, $ETH may retest its all-time high close to $4,900 if it is able to penetrate above the $4,400-$4,500 resistance zone. In other words, Ethereum's structural and fundamental health are still sound, despite the fact that short-term volatility continues. The path to $5,000 appears more likely now that momentum is picking up again, and it may happen sooner than anyone anticipated.