Ethereum Profit-Taking in Progress, Longterm Bullish Case Stands

Ether was unable to break above the trendline following its strong rally. In the medium term, our base case remains bullish, with expectations of over 100% return within a year. However, in the short term, some downward pressure and profit-taking are currently in play.

Two days ago, the Ethereum ETF experienced its largest single-day net outflow. If this turns into a trend, a broader selloff may begin. Should ETH approach the 3000 level, it could present a strong opportunity to re-enter from the bullish side.

There is also a chance of a trendline breakout occurring before a significant downward reaction. If that happens, it would suggest that demand for ETH is stronger than previously realized, and our base case may actually be too conservative.