TLDR
- Ethereum (ETH) reclaimed $2,500 support, rising 8.6% in 7 days
- $2,700 is the next crucial resistance level for ETH
- Analysts predict ETH could reach $3,500 if it breaks out
- ETH/BTC chart suggests altcoins are currently cheap relative to Bitcoin
- Ethereum is attempting to break out of a 3-month symmetrical triangle pattern
Ethereum, the second-largest cryptocurrency by market capitalization, has shown strong performance in recent days, reclaiming the $2,500 support zone and making moves towards the $2,700 resistance level.
This price action has caught the attention of market analysts, who are closely watching for signs of a potential breakout.
Over the past week, Ethereum has seen an 8.6% increase in value, climbing from the $2,300-$2,400 range to around $2,600.
The cryptocurrency has successfully retested the $2,600 level, now holding it as support while attempting to push higher.
The $2,700 price range represents a significant hurdle for Ethereum, as it hasn’t managed to break above this level in nearly three months.
Market analyst CryptoWolf pointed out that ETH has been rejected from this local top twice since August’s market crash, making it a critical resistance to overcome.
Some analysts are optimistic about Ethereum’s prospects if it can clear this resistance. CryptoWolf suggests that once the $2,700 zone is breached, ETH’s price could head “straight to the 3500s,” with the $3,000 mark potentially offering little resistance.
Once the previous local top around 2700s is cleared, we’re heading straight to the 3500s. In my opinion, the 3k resistance won’t stand a chance. $ETH pic.twitter.com/UMnJnuV6j1
— Wolf
Similarly, crypto analyst Alex Clay believes that Ethereum is poised to “catch up on BTC” and potentially rise toward $3,500.
The ETH/BTC chart has also drawn attention from market watchers. Tony Research noted that this chart indicates altcoins are currently cheap relative to Bitcoin.
An increase in this ratio could positively affect altcoin prices, including Ethereum. Historically, the fourth quarter has been Bitcoin’s strongest period, which could set the stage for significant altcoin growth in the first quarter of 2025.
Ethereum’s price action is currently forming interesting patterns that traders are monitoring. Analyst Crypto Yapper has identified a three-month symmetrical triangle pattern, from which Ethereum is attempting to break out.
On Tuesday, ETH briefly rose above the upper trendline of this formation, reaching $2,688 before retracing to $2,550. Another attempt to break out occurred on Wednesday, with the price surging above $2,630 before settling around the $2,600 support zone.
#ETH to catch up on $BTC and rise up to $3500
Imo $ETH completed it’s local accumulation and ready to switch the short-term trend for the Bullish
— Alex Clay (@cryptclay) October 16, 2024
If Ethereum successfully breaks out of this symmetrical triangle formation, Crypto Yapper suggests the next target could be the $2,900 mark.
Reclaiming this level might pave the way for ETH to revisit its March highs, as the $2,900-$3,000 range served as a key support zone during the initial leg of the rally earlier this year.
Adding to the technical analysis, seasoned trader Peter Brandt recently highlighted an inverted Head and Shoulders (H&S) pattern forming on Ethereum’s chart.
This pattern is often interpreted as a bullish signal, suggesting that a significant breakout might be on the horizon.
As of the latest data, Ethereum is trading at $2,612, representing a 1% increase in the daily timeframe. The cryptocurrency continues to test the upper bounds of its recent trading range, with market participants eagerly watching for signs of a decisive move.
The post Ethereum’s Next Move: Breaking $2,700 or Falling Back? appeared first on Blockonomi.
Source: https://blockonomi.com/ethereums-next-move-breaking-2700-or-falling-back/