Ethereum, the second-largest cryptocurrency by market capitalization, is currently exhibiting signs of a bullish breakout, as observed by two prominent analysts in the crypto space. According to the analysts, Ethereum shows consolidation within a bullish pennant pattern. This technical formation typically suggests a continuing upward trend in Ethereum’s case.
According to World Of Charts, if Ethereum successfully breaks out of this pattern, it could surge toward a significant level of $3,500. The analyst’s optimism is based on the consolidation pattern and the potential for Ethereum’s price to continue its upward trajectory.
Adding to the optimistic outlook, crypto trader Skew has identified the $2,320-$2,382 range as a key resistance zone for Ethereum. Historically, this price range has acted as a barrier to Ethereum’s upward movement, with numerous rejections witnessed at these levels.
Skew emphasizes the importance of Ethereum closing above $2,400 on the 1-hour and 4-hour charts. This decisive move would breach the resistance zone and confirm Ethereum’s bullish momentum. Technical indicators such as the Relative Strength Index (RSI) and stochastics still display significant momentum, supporting the potential for Ethereum’s continued upward trend.
Despite recent market turbulence, including the plunge of several cryptocurrencies, Ethereum has shown resilience and is currently in the green. Over the past 24 hours, Ethereum has climbed by 5.5%, surpassing the $2,400 mark before a slight retracement to around $2,381 at the time of writing.
This bullish trend is further supported by increased trading volume, which surged below $30 billion to approximately $39 billion in the past day. The surge in volume indicates strong buying interest and further supports the potential for Ethereum’s upward momentum.
Skew suggests that Ethereum’s bullish momentum could receive an additional boost from the potential approval of a Spot BTC ETF. If such approval were to come to fruition, it could further support Ethereum’s upward trajectory.
This sentiment is echoed by Michaël van de Poppe, another renowned crypto analyst, who also foresees Ethereum’s approach to its 2022 low as a precursor to a potential breakout. Van de Poppe believes that Ethereum’s current positioning near last year’s low could be crucial in absorbing liquidity and fueling a bullish breakout.
Van de Poppe’s analysis highlights the broader market context, specifically the awaited decision on a spot Bitcoin ETF in the US. An approval, he predicts, could notably impact the ETH/BTC trading pair, potentially triggering a sharp price movement known as a liquidation candle.
Following this potential price movement, Van de Poppe anticipates a significant reallocation of funds into Ethereum, accompanied by a bullish weekly divergence. This reallocation of funds and the bullish divergence could propel Ethereum onto an upward trajectory.
Ethereum is showing signs of a bullish breakout, as indicated by the consolidation within a bullish pennant pattern. Analysts predict a surge towards $3,500 if Ethereum successfully breaks out of this pattern. The key resistance zone at $2,320-$2,382 must be breached to confirm Ethereum’s bullish momentum. Despite recent market turbulence, Ethereum has shown resilience and has experienced a bullish trend with increased trading volume. The potential approval of a Spot BTC ETF could further support Ethereum’s upward trajectory. Furthermore, Ethereum’s approach to its 2022 low and the awaited decision on a spot Bitcoin ETF in the US could trigger a significant price movement and reallocation of funds into Ethereum. As with any investment, it is important to conduct thorough research and make informed decisions based on individual risk tolerance.