Ethereum, the second-largest cryptocurrency by market capitalization, is currently displaying signs of a bullish breakout, according to two prominent analysts in the crypto space. World Of Charts has identified consolidation within a bullish pennant pattern in Ethereum’s price action. This technical formation typically suggests a continuation of an upward trend for Ethereum. If Ethereum successfully breaks out of this pattern, World Of Charts predicts that it could surge towards a significant level of $3,500. The positive outlook indicates potential gains for Ethereum investors in the near future.
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 several rejections witnessed at these levels. Skew emphasizes the importance of Ethereum closing above $2,400 on the 1-hour and 4-hour charts. A decisive move above this level 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. Skew notes that it might be the right time for Ethereum to shine and run, especially if a BTC Spot ETF is legitimately approved later. The approval of a Spot BTC ETF could further strengthen Ethereum’s bullish trajectory.
Resilience Amid Market Turbulence: Ethereum’s Green Streak
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. The resilience of Ethereum in the face of market volatility highlights its potential for growth and stability.
A Precursor to Breakout: Ethereum Approaching 2022 Low
Renowned crypto analyst Michaël van de Poppe foresees Ethereum’s approach to its 2022 low as a precursor to a potential breakout. Van de Poppe suggests that Ethereum’s current positioning near last year’s low could be crucial in absorbing liquidity and fueling a bullish breakout. This analysis takes into account the broader market context, particularly the awaited decision on a spot Bitcoin ETF in the US. Van de Poppe predicts that an approval of the ETF could notably impact the ETH/BTC trading pair, potentially triggering a sharp price movement known as a liquidation candle. Following this scenario, Van de Poppe anticipates a significant reallocation of funds into Ethereum, accompanied by a bullish weekly divergence, propelling Ethereum onto an upward trajectory.
The positive analysis from these prominent analysts suggests a bullish future for Ethereum. The potential surge towards $3,500 provides investors with an opportunity for significant gains. However, it is important to note that investing in cryptocurrencies carries risks, and individuals are advised to conduct their own research before making any investment decisions. The anticipated approval of a Spot BTC ETF and Ethereum’s resilience amid market turbulence further support its upward trajectory. As the crypto market continues to evolve, Ethereum’s bullish breakout and its potential for growth continue to attract attention from investors worldwide.
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell, or hold any investments. Investing in cryptocurrencies carries risks, and individuals are advised to conduct their own research before making any investment decisions. The information provided in this article should be used entirely at the reader’s own risk.
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