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. World Of Charts identifies a consolidation within a bullish pennant pattern in Ethereum’s price chart, which typically suggests the continuation of an upward trend. If Ethereum successfully breaks out of this pattern, it could surge toward a significant level of $3,500.
Adding to World Of Charts’ optimistic outlook, crypto trader Skew has identified the $2,320–$2,382 range as a key resistance zone for Ethereum. This price range has historically 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.
Despite recent market turbulence, including the plunge of several cryptocurrencies following the Securities and Exchange Commission’s (SEC) fake spot ETF approval announcement, 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. Skew suggests that Ethereum’s bullish momentum could receive an additional boost from the potential approval of a Spot BTC ETF. If such approval materializes, it could further support Ethereum’s upward trajectory.
Precursor to a Potential Breakout
Renowned crypto analyst Michaël van de Poppe believes that Ethereum’s approach to its 2022 low could be crucial in absorbing liquidity and fueling a potential breakout. Van de Poppe highlights the broader market context, specifically the awaited decision on a spot Bitcoin ETF in the US. An approval of the ETF, according to his analysis, could notably impact the ETH/BTC trading pair, potentially triggering a sharp price movement known as a liquidation candle.
Following this possible scenario, Van de Poppe anticipates a significant reallocation of funds into Ethereum, accompanied by a bullish weekly divergence. This reallocation and bullish divergence would propel Ethereum onto an upward trajectory, potentially leading to substantial gains.
While the analysis and predictions provided by these analysts are optimistic, it is essential to remember that investing in cryptocurrencies carries inherent risks. The cryptocurrency market is known for its volatility and unpredictability, and prices can fluctuate rapidly. Therefore, it is crucial for investors to conduct their own research and exercise caution when making investment decisions.
It is also important to note that the opinions expressed in this article do not represent the views of NewsBTC. This article is purely educational and should not be taken as financial advice. NewsBTC advises readers to make investment decisions based on their own discretion and consult with a financial advisor if needed.
Ethereum is showing signs of a bullish breakout, with analysts predicting a surge to $3,500. The consolidation within a bullish pennant pattern and the identification of a key resistance zone add weight to these predictions. Despite recent market turbulence, Ethereum remains resilient and is currently in the green. The potential approval of a Spot BTC ETF and Ethereum’s approach to its 2022 low further contribute to the positive sentiment. However, it is essential for investors to exercise caution and conduct thorough research before making any investment decisions.