Ethereum, the second-largest cryptocurrency by market capitalization, is currently displaying indications of a bullish breakout, according to two prominent analysts in the crypto space. World Of Charts has observed that Ethereum exhibits consolidation within a bullish pennant pattern, which typically suggests a continuation of an upward trend. Should Ethereum successfully break out of this pattern, it could potentially surge towards a significant level of $3,500. This optimistic outlook from World Of Charts signals positive sentiment towards Ethereum’s price movement.
Supporting the optimistic view, 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 several rejections witnessed at these levels. Skew emphasizes the importance of Ethereum closing above $2,400 on the 1-hour and 4-hour charts, as it would breach the resistance zone and confirm the cryptocurrency’s bullish momentum. Technical indicators such as the Relative Strength Index (RSI) and stochastics still display significant momentum, further supporting the potential for Ethereum’s continued upward trend. Skew’s analysis adds to the positive sentiment surrounding Ethereum’s price performance.
Despite recent market turbulence, including the decline 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 experiencing a slight retracement to around $2,381 at the time of writing. This bullish trend is further supported by increased trading volume, which surged from below $30 billion to approximately $39 billion in the past day. The ability of Ethereum to maintain its positive trajectory amidst market volatility showcases its strength and potential for further gains.
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 materialize, it could further validate Ethereum’s upward trajectory. The approval of a spot Bitcoin ETF is highly anticipated in the crypto community and could have a significant impact on various cryptocurrencies. The potential positive effect on Ethereum’s price movement demonstrates the interconnectedness and influence of different crypto assets within the market.
Another renowned crypto analyst, Michaël van de Poppe, forecasts 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 is crucial in absorbing liquidity and fueling a bullish breakout. His analysis highlights the broader market context, specifically the awaited decision on a spot Bitcoin ETF in the US. In the event of approval, Van de Poppe predicts a possible sharp price movement known as a liquidation candle, which could significantly impact the ETH/BTC trading pair. This could lead to a reallocation of funds into Ethereum, accompanied by a bullish weekly divergence, propelling Ethereum onto an upward trajectory.
Ethereum is currently showing signs of a bullish breakout according to prominent analysts in the crypto space. The consolidation within a bullish pennant pattern and the identification of a key resistance zone highlight Ethereum’s potential for an upward trend. Its resilience amidst market turbulence and increased trading volume further support the positive sentiment surrounding Ethereum’s price performance. The potential approval of a Spot BTC ETF and Ethereum’s approach to its 2022 low add to the anticipation of a breakout and the potential for significant price movements. As always, it is important to conduct thorough research and exercise caution when making investment decisions in the volatile cryptocurrency market.
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