Ethereum price has stabilized above the key support level at $3,000 as demand for the coin continues rising. ETH token was trading at $3,260, up sharply from the November low of $2,618. This article explores the bullish case for ETH and why it may jump to a record high soon.

Ethereum price has strong technicals

The first main bullish case for Ether is that it has strong technicals. The daily chart shows that the token has rebounded from the November low of $2,618 to the current $3,260. 

It has already moved above the upper side of the falling wedge pattern, which is one of the most popular bullish reversal patterns in technical analysis.

The token is now attempting to move above the 50-day and 200-day Exponential Moving Averages (EMA). It is also attempting to move above the Supertrend indicator, one of the most accurate indicators in technical analysis.

Therefore, the token will likely continue rising in the coming weeks, with the next key target to watch being the psychological level at $4,000. A move above that level will point to more gains, potentially to the psychological level at $4,950, its highest level on August 24, up by 52% from the current level.

The bullish Ethereum price prediction will become invalid if it tumbles below the November low of $2,620, its lowest level in November. Such a move will confirm that bears have prevailed.

ETH price chart | Source: TradingView

Ethereum is Winnie the layer-1 game 

The other main catalyst for Ethereum price is that the network has largely won the layer-1 industry despite the rising competition from the likes of Plasma, Monad, Midnight, Solana, and BSC.

Third-party data shows that the network has continued to gain market share despite this competition. For example, data compiled by DeFi Llama shows that Ethereum has a total value locked (TVL) of $150 billion in the decentralized finance industry, giving it a market dominance of 77%. 

In contrast, Solana has a TVL of  $20 billion, while BSC and Plasma have $9">Copy link