Ethereum (ETH) has fallen nearly 50% over the past year, undermining investors’ confidence in the second largest cryptocurrency by market capitalization. However, crypto analysts suggest that ETH’s fate may be nearing.
Ethereum set for a bullish breakout?
Unlike Bitcoin (BTC), ETH has not benefited significantly from the bullish developments in 2024. The approval of Spot BTC Exchange-Traded Funds (ETF) opened the lock for facility capital to flow to top digital assets, but the ETH ETF did not generate the same level of profit.
Furthermore, ETH’s Low performance It’s just deeper than BTC. Crypto analyst Daan Crypto Trades shared the ETH/BTC chart for the next two weeks showing how ETH has been consistently destroyed over the past few years through its major high time frame support levels for BTC.
Currently, ETH is trading at a level not seen compared to BTC since 2020. According to analysts, the final major ETH/BTC support was around 0.016, nearly 20% below the current level of 0.019.
In a more optimistic note, fellow analyst Ted noted that ETH may have slipped out of the downward trendline of the two-hour chart. He commented:
The global market has acquired some strength, so expect Ethereum to hold the level between $1,550 and $1,600. For now, I’m hoping for the above breakout and wanting to go over $1,670 for a rally to $2K.
Similarly, veteran Crypto analyst Titan highlighted that ETH appears to be poised to break out of the rising triangle pattern in the weekly time frame. According to him, ETH is currently trading at the bottom of the structure and could be set up to test the top of the formation, around $3,600.
For beginners, the rising triangle is a continuation pattern formed when the price creates a higher and lower value while facing resistance at a horizontal level. It indicates the construction of purchase pressure, and breakouts above the resistance line often lead to strong upward movement.
Increased ETH exchange reserves can help keep prices down
The analyst above refers to a potential bullish reversal for ETH, but Crypto analyst Ali Martinez It’s attracting attention Over 368,000 ETH have been sent out for exchanges since the beginning of the month. The increase in digital assets’ exchange reserves is bearish news, as it usually indicates that holders may be trying to sell their assets in the near future.
Furthermore, even if ETH is already at the bottom for this market cycle, it is still face Strong resistance around the $2,300 mark. At press time, ETH will trade at $1,612, a 2.7% decrease over the past 24 hours.
Unsplash.com featured images, X and tradingView.com charts
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