Ethereum, the second-largest cryptocurrency by market capitalization, is currently showing signs of a bullish breakout, as observed by two prominent analysts in the cryptocurrency space. According to World Of Charts, Ethereum is showing consolidation within a bullish pennant pattern.
This technical makeup generally suggests a continuation of the upward trend for Ethereum. According to analysts, if Ethereum successfully breaks out of this pattern, it could surge to a significant level of $3,500.
The trend is consolidating in a bullish pennant and a breakout is expected soon if a successful breakout is expected and a move towards 3500$#Crypto is expected. #S #Ethusdt #Ethereum pic.twitter.com/nlqbMfh3k0
— World Of Charts (@WorldOfCharts1) January 10, 2024
Critical Resistance Area: Ethereum Breakout Path
Adding to World Of Charts’ bullish outlook, cryptocurrency trader Skew identified the $2,320-$2,382 range as a key resistance area for Ethereum. This price range has historically acted as a barrier to upward movement for Ethereum, with “numerous rejections” seen at this level.
Skew highlights the importance of Ethereum closing above $2,400 on the 1-hour and 4-hour charts. This decisive move will break the resistance area and confirm Ethereum’s bullish momentum.
Skew also noted that technical indicators such as Relative Strength Index (RSI) and stochasticity still show significant momentum, supporting Ethereum’s continued upward trend.
$ETH 4 hours
Perhaps now is ETH’s time to shine and run. It would certainly help if a BTC spot ETF were later legally approved.$2320 – $2382 proved strong resistance with numerous rejections.
The key confirmation will be a solid first half and four-hour close above $2400.
4H Trends &… pic.twitter.com/taWbcC7eWY
— Skew Δ(@52kskew) January 10, 2024
Ethereum’s solo bull market amid market turmoil
Despite recent market turmoil, including a plunge in several cryptocurrencies, including BTC, following the Securities and Exchange Commission’s (SEC) announcement of its approval of a fake spot ETF, Ethereum has shown resilience and is currently in the green.
Over the past 24 hours, Ethereum has risen 5.5% to surpass $2,400, and at the time of writing is back slightly at around $2,381. This bullish trend is further supported by the surge in daily trading volume from less than $30 billion to around $39 billion over the past day.
Skew suggests that Ethereum’s bullish momentum could gain further upside due to the potential approval of a Spot BTC ETF. Such approval, if it comes to fruition, could further support Ethereum’s upward trajectory.
This sentiment is echoed by another prominent cryptocurrency analyst, Michaël van de Poppe, who also predicts Ethereum’s approach to 2022 lows as a harbinger of a potential breakout. Van de Poppe believes that Ethereum’s current position close to last year’s lows could be important in absorbing liquidity and fostering a bullish breakout.
Van de Poppe’s analysis highlights the broader market situation, particularly the decisions that await for spot Bitcoin ETFs in the US. He predicts that the approval could have a major impact on the ETH/BTC trading pair, potentially triggering sharp price movements known as liquidation candles.
Accordingly, Van de Poppe expects Ethereum to enter an upward trajectory, accompanied by a significant reallocation of funds into Ethereum and a strong weekly quarter.
Featured image by Unsplash, chart by TradingView
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