Ether's Bullish Chart Pattern Mirrors Bitcoin's Pre-Rally Setup, Backed by Rising Network Activity and ETF Inflows

Ether's price chart is showing a pattern that looks a lot like what we saw before Bitcoin's big rally.

The three-line break chart for Ether indicates a bullish trend, similar to Bitcoin's in mid-October. This positive setup is backed by a rise in Ethereum network activity and inflows into spot ETFs.

Recently, Ethereum has been in the spotlight for all the right reasons. It's sending strong signals for its native token, Ether (ETH). Now, the price chart reveals a pattern that reminds us of Bitcoin's setup just before its impressive rally last month.

Ether's three-line break chart filters out daily noise and erratic movements. It shows that the eight-month downtrend, marked by lower highs and lower lows, has come to an end. The broader uptrend from the October 2023 lows around $1,500 has picked up again.

Breakouts like this often create a ripple effect, attracting new buyers and pushing out sellers who have held back price increases during consolidation.

Bitcoin had a similar breakout in mid-October, which led to a rally that pushed it past $73,000. Since then, Bitcoin has jumped 45%, now sitting over $96,000, according to TradingView and CoinDesk.

Traders often look at price patterns to gauge trends, but these patterns don’t always work as expected. Fundamental factors can significantly influence trends, too.

Supporting the bullish outlook for Ether, recent activity on the Ethereum network has been noteworthy. The number of "blobs" posted by layer 2 protocols surged in November. Posting these blobs incurs variable fees paid in Ether, which are burned just like standard transaction fees. This effectively reduces the supply of ETH in the market.