Prominent analysts in the crypto space have observed signs of a bullish breakout for Ethereum, the second-largest cryptocurrency by market capitalization. According to World Of Charts, Ethereum is currently showing consolidation within a bullish pennant pattern. This technical formation typically suggests a continuation of the upward trend for Ethereum. The analyst predicts that if Ethereum successfully breaks out of this pattern, it could surge towards a significant level of $3,500.
Adding to the 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. Skew also notes that 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 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 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.
Potential approval of a Spot BTC ETF
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. He predicts that an approval could notably impact the ETH/BTC trading pair, potentially triggering a sharp price movement known as a liquidation candle. Following this, he anticipates a significant reallocation of funds into Ethereum, accompanied by a bullish weekly divergence, propelling Ethereum onto an upward trajectory.
Ethereum is currently showing promising signs of a bullish breakout according to expert analysis. The consolidation within a bullish pennant pattern, combined with the identification of a key resistance zone, suggests that Ethereum’s upward trend may continue. Despite recent market turbulence, Ethereum has demonstrated resilience and has climbed in value, supported by increased trading volume. The potential approval of a Spot BTC ETF could further boost Ethereum’s momentum. The broader market context, including the awaited decision on a spot Bitcoin ETF, signals a potentially significant reallocation of funds into Ethereum and a future upward trajectory. However, as with any investment, it is important to conduct thorough research and consider the risks before making any investment decisions.