Ethereum

Bitcoin

when

Daily

Coin

Ethereum (ETH) recently displayed a head and shoulders pattern on the 4-hour chart. It’s a formation often regarded as a bearish reversal signal. 
The neckline, typically the level of support that triggers a further price drop upon a breakdown, was briefly breached, indicating potential for further declines. 
However, Ethereum’s recent movements suggested a retest of this crucial neckline. After breaking below the neckline, <a href="https://www.thecoinrepublic.com/2024/11/12/can-ethereum-reach-6000-as-1-59b-shorts-face-liquidations/">ETH</a> showed a rebound, pushing prices back to this key level. 
This move could suggest a bear trap, where the initial breakdown was misleading, potentially luring bears before reversing higher. 
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$ETH</a> Retesting that head and shoulders breakdown level now. Will it reclaim and this was just a bear trap? Or will it reject on retest and head lower for the measured target? <a href="https://t.co/5snIhFcnLg">https://t.co/5snIhFcnLg</a> <a href="https://t.co/eTBkH9fngI">pic.twitter.com/eTBkH9fngI</a>— Nebraskangooner (@Nebraskangooner) <a href="https://twitter.com/Nebraskangooner/status/1857105789409702120?ref_src=twsrc%5Etfw">November 14, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
If ETH manages to reclaim the neckline convincingly, it could negate the bearish outlook and indicate strength, possibly leading to an upward rally. 
Conversely, failure to hold above this neckline on retest could confirm the bearish scenario. This would lead ETH to target lower supports as indicated by the pattern’s measured move. 
The immediate moving averages acting as dynamic resistance levels further compound the critical nature of this retest. This makes the next few trading sessions pivotal for Ethereum’s short-term price direction. 
<h2 class="wp-block-heading" id="h-altcoin-season-36-ready">Altcoin Season 36% ready</h2> 
The CoinMarketCap Altcoin Season Index, which stood at 36/100. This score suggests we are not fully in an altcoin season, but rather closer to a Bitcoin-dominant period. 
The index clarified that an official altcoin season is recognized when 75% of the top 100 coins outperform Bitcoin over a 90-day period. Currently, this is not the case, as the trend remains below this threshold, despite Bitcoin’s rise to $93K. 
Ethereum, as a major altcoin, is directly impacted by this sentiment. The index trend over the last three months showed that although altcoins, including ETH, are gaining. Yet they haven’t yet eclipsed Bitcoin’s performance. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
 <img loading="lazy" decoding="async" width="680" height="622" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-431.png" alt="" class="wp-image-836990" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-431.png 680w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-431-300x274.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-431-150x137.png 150w" sizes="auto, (max-width: 680px) 100vw, 680px">
 <figcaption class="wp-element-caption">
 CMC Altcoin season Index | Source: CoinMarketCap
 </figcaption>
 </figure>
</div> 
This could suggest that Ethereum’s recent price actions, which might seem bearish, could actually be a bear trap rather than the start of a major correction. 
If altcoins begin to outperform, <a href="https://www.thecoinrepublic.com/2024/11/13/ethereum-price-eyes-6000-analysts-warn-of-potential-pullback/">Ethereum</a> could well lead this charge, reversing any bearish impressions left by recent price movements. 
This insight suggested a bullish outlook might still be valid despite current market hesitations. 
<h2 class="wp-block-heading" id="h-ethereum-l2s-tps">Ethereum L2s’ TPS</h2> 
ETH’s Layer 2 networks saw an increase in daily average transactions per second (TPS), peaking at 367.63. 
Since May 2020, the TPS on Ethereum’s L2 has grown significantly, with a notable scaling factor of 25.30 times. 
This rise correlated with technological advancements and increased adoption of Layer 2 solutions, which are essential for Ethereum’s scalability and efficiency. 
The surge in TPS indicated utilization of Ethereum’s network, through L2 protocols helping in handling transactions off the main Ethereum blockchain. 
This allowed ETH to scale by handling more transactions per second at lower costs. 
<figure class="wp-block-image size-large">
 <img loading="lazy" decoding="async" width="1024" height="471" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-1024x471.png" alt="" class="wp-image-836997" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-1024x471.png 1024w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-300x138.png 300w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-768x353.png 768w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-1536x706.png 1536w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-150x69.png 150w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-696x320.png 696w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-1068x491.png 1068w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432-1920x882.png 1920w, https://www.thecoinrepublic.com/wp-content/uploads/2024/11/image-432.png 2048w" sizes="auto, (max-width: 1024px) 100vw, 1024px">
 <figcaption class="wp-element-caption">
 Daily average transactions per second | Source: L2BEAT
 </figcaption>
</figure> 
The TPS suggested a momentum likely to surpass previous highs, potentially reaching 400 TPS by the end of the year. The increase in L2 transaction activity was bullish indicator for ETH. 
It implied that ETH was not merely surviving in a congested network state but also thriving as the enhancements made it more viable for mass adoption. 
The rising TPS on L2 solutions not only alleviates the burden on the main chain but could also attract more decentralized applications. 
This further suggested Ethereum’s price might not be headed for a correction but is rather in a bear trap, setting up for a potential upward trajectory as network efficiency and capacity improve. 
The post <a href="https://www.thecoinrepublic.com/2024/11/17/is-ethereum-in-a-bear-trap-or-declining/">Is Ethereum In A Bear Trap Or Declining?</a> appeared first on <a href="https://www.thecoinrepublic.com">The Coin Republic</a>.

Is Ethereum In A Bear Trap Or Declining?

Table of Contents

Thecoinrepublic.com

Other articles published on Nov 17, 2024

Renowned Analyst Predicts XRP and ADA Will Hit $1 in 2025, but CYBRO Will Soar First

Pepe Unchained Presale Hits $30 Million, Ends in 28 Days – Last Chance to Invest in Biggest Ever ...

DOGE, SHIB, PEPE: Which Coin Has the Most Potential?

Tether Mints 8B USDT in 8 days, Backing Bitcoin’s Surge

Ready To Dive Into The NFT Craze?- Here’s The Best NFT Platforms To Trade Your NFTs

Microstrategy’s $26 Billion Bitcoin Stash Now Exceeds IBM and Nike Holdings

Join our free newsletter for daily crypto updates!