Following recent market performance, Ethereum (ETH) has attempted to break out of a bullish formation. Some analysts believe the cryptocurrency is preparing to catch up to Bitcoin and hit March highs.
Related Reading
Ethereum Preparing to Challenge BTC
This week, Ethereum successfully achieved recovered the $2,500 support zone following recent market performance. The second-largest cryptocurrency by market capitalization has seen an 8.6% increase over the past seven days, moving from the $2,300-$2,400 range to the $2,600 mark.
Over the past 24 hours, ETH has retested the $2,600 resistance level, currently holding it as support as it attempts to reclaim the $2,700 price range. This zone is the next crucial level as the cryptocurrency has not successfully broken through for nearly three months.
Market analyst CryptoWolf pointed out that Ethereum has been rejected from the local top around this level twice since the market crash in August, making it the next major resistance to break.
However, once the zone is cleared, the price of ETH “heads directly towards 3,500”, as the analyst considers that the $3,000 mark “will have no chance”. Similarly, crypto analyst Alex Clay suggested that the King of Altcoins is about to “catch up with BTC” and rise to $3,500.
For the analyst, Ethereum has completed its local accumulation within the range of US$2,100 to US$2,700 and “is ready to change the short-term trend to bullish”. Other market observers have also suggested that the market is near the bottom after the sideways movements, based on the ETH/BTC chart.
Tony Search stated that the chart “suggests that altcoins are currently cheap relative to Bitcoin. An increase in this chart will positively affect altcoins and their prices.” As the investor pointed out, altcoins could see significant growth during the first quarter of 2025, as the fourth quarter has historically been the best time for Bitcoin growth.
ETH tries to break out of bullish pattern
Yapper Crypto Analyst observed that Ethereum is trying to break out of its consolidation formation. The cryptocurrency is within a three-month symmetrical triangle pattern and attempted to break above the upper trendline on Tuesday.
Yesterday, ETH briefly rose above the trendline after reaching $2,688 but quickly bounced back to $2,550. Ethereum tried another skirt From the symmetrical triangle’s upper trendline on Wednesday, rising above $2,630 before settling around the $2,600 support zone.
Related Reading
For the analyst, Ethereum will target the next US$2,900 mark if it leaves this formation. A rebound from this level could propel the ETH price towards its March highs, as the $2,900 to $3,000 price range was a key support zone during the first leg of the rally.
Meanwhile, seasonal trader Peter Brandt recently highlighted an inverted Head and Shoulders (H&S) pattern on the ETH chart. The trader signaled that an H&S bottom is forming, also suggesting a massive breakout may be imminent.
At the time of writing, ETH is trading at $2,612, up 1% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com