• Ethereum’s technical and on-chain indicators signal the potential for a major trend reversal.
• The resurgence in new address momentum suggests growing organic adoption.
• Analysts anticipate ETH could challenge its all-time highs within 90 days.

Ethereum (ETH) is trading at $1,833.92, a day-high 1.26% jump in value and a 24-hour trading volume of $15.72 billion, representing a 4.16% gain. ETH has appreciated by 3.51% over the last week, a sign of increasing optimism.

Crypto analyst NoName is convinced that the digital currency has the potential to make a stunning recovery, with a number of major indicators pointing towards a reversal in direction.

Analyst refers to a rare Dragonfly Doji candlestick pattern in the ETH monthly chart, a previously very strong bullish sign in 2017 prior to Ethereum’s surge throughout the ICO bubble. The analyst draws attention to ETH’s retest of its long-term parabolic support line, noting that breaking this pattern is still very low in probability. 

The analyst also refers to the Z-Score MVRV, a measure of investor sentiment and undervaluation, which has again entered its area of accumulation, a direct indicator that market despair is potentially near an all-time peak.

Fueling the optimism is that Ethereum’s protocol is said to be in line for major upgrading with fresh participation by co-founder Vitalik Buterin. The upgrading has the potential to improve speed and scalability and bring in institutional capital and retail interest.

Aside from charts and technical indicators, underlying network fundamentals in ETH are strengthening discreetly. New address momentum has turned bullish in a key metric with a 30-day moving average of new wallets exceeding its yearly average. This crossover has always been followed by major adoption cycles in history, including the 2017 ICO bubble and 2020 DeFi explosion.

In contrast to speculation-driven spikes, this new growth is a “quiet build phase,” marked by sustained onboarding of actual users and builders. New Layer-2 products have reduced barriers to entry through less expensive transactions, and tokenized real-world assets (RWAs) such as government bonds and gold are increasingly popular on ETH.

This development implies a structural shift in Ethereum’s environment, less dependent on hype but rather on real utility. If it continues, it has the potential to form a long-term value-appreciation foundation in ETH.

From a risk-reward standpoint, present prices of ETH can be a tactical point of entry for long-term buyers. Prices are muted even with firming on-chain activity and a positive underlying structure. Experts say this gap between adoption and price generally is a harbinger of a major rally.

Although Ethereum has trailed in recent months, its underlying fundamentals are stronger than ever. With increasing new addresses, important protocol developments, and resilient support levels, Ethereum may be on the verge of a new bull run, potentially in the next 90 days.