- Ethereum surged 7.5% in one day, breaking key resistance above $2,550 and aiming for $3,000.
- The coin is testing crucial resistance near $2,700 after consolidating between $2,400 and $2,800 since May.
- Analysts highlight a strong breakout pattern, suggesting Ethereum could replicate a past 800% rally like in 2020-2021.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, rallied incredibly by leaping up by 7.5% within a day to go past a very significant resistance area for the first time in weeks. The upswing has again brought back hopes in the minds of the traders and analysts that a retest of the recent top is imminent.
Wednesday saw Ethereum leap from a local low near $2,380 to near $2,585, its recent high. This large push is a lead-in for ETH to test large areas of resistance near $2,700, a price that most consider integral to the next large directional move.
Since the beginning of May, the Ethereum price has been oscillating within a rather narrow range between $2,400 and $2,800. The coin previously dipped below the range two weeks ago following the failure to hold the support at $2,550. Thereafter, the coin could not penetrate the high at $2,500, but today’s resurgence, coupled with Bitcoin’s push to $109,600, assisted in reopening the bullish sentiment within the market.
Major trader Daan Crypto Trades described Ethereum’s recent price movement as a “good move out of the local range” but cautioned that bulls need to maintain the $2,520 level. A decline below that might be a false breakout or liquidity trap and take ETH back to the lower range corner. Levels to watch remain the same at $2,310 as support and at $2,735 as resistance.
Ethereum Ready for Powerful Breakout After Two-Year Base
Analyst Merlijn Trader called Ethereum’s breakout “one of the cleanest breakouts we’ve ever seen.” He added a three-month ascending triangle chart pattern, showing how the ascension honored its ascension support line at each point. A clean break above $2,700 can catalyze a decisive upward momentum that can push ETH up to $3,000 and beyond, said Merlijn.
Merlijn also noted that the recent price activity in ETH repeats a longer-term two-year cycle model that began in 2018. Typically, the ETH passes through three stages within the cycle: initially, the formation of a stable base; secondly, the testing and rejection at lower prices; and lastly, a strong “liftoff” or breakout stage.
The last liftoff, from 2020 to 2022, lifted ETH from around $100 to an all-time high at around $4,878. Merlijn is speculating that this time around, ETH is lifting off around $1,500, a much higher and stronger baseline that may drive another massive upswing.
Despite Bitcoin Highs, Ethereum Set for Massive 800% Surge
To back this point, analyst Kaleo pointed out striking similarities between the current and past Ethereum cycles. Even with Bitcoin reaching its record highs late in the year 2020, ETH stayed below its previous top by over 60%, leading some to draw the incorrect conclusion that ETH was “dead.” But then Ethereum soared by over 800% within subsequent months while readily outpacing Bitcoin’s 250% increase.
Also Read: Ethereum and Cardano Price Soars, Are New All-Time Highs In Sight?!
Ethereum has retraced about 68% from its latest all-time high as Bitcoin sets new records. History repeating itself, Kaleo is sure that the worst is over for ETH and the journey is decidedly bullish.
Ethereum is currently trading at $2,602 at the time of writing, with a week-on-week growth of close to 6%. With healthy technical patterns and a bullish sentiment in the market, ETH is up for an exciting next chapter with the potential to reach $3,000 and ignite a fresh bull run.
Also Read | Early Ethereum Investor Makes 149x Gains: Will July Bring a $3K Breakout?
