Ethereum, the second-largest cryptocurrency by market capitalization, is showing signs of a potential breakout towards the $3,000 mark after a period of sideways trading. Analysts are optimistic about Ethereum’s future price action, with many suggesting that if the $2,600 level holds as support, a significant upward move could be on the horizon.
In the past 24 hours, Ethereum has made notable gains, with a surge to the $2,700 resistance level following a 6.3% price jump. Despite reaching this level, Ethereum retraced back slightly, unable to break through the resistance it set at $2,738 two weeks ago. However, analysts are pointing out that Ethereum has been steadily climbing over the past month, registering a 50% increase and outperforming Bitcoin during the second quarter.
Some analysts believe that Ethereum is on the cusp of a major breakout, with technical indicators suggesting that a move towards the $3,000 level could be imminent. The Cryptonomist highlighted Ethereum’s break above the $2,600 level as a strong signal that the cryptocurrency could be gearing up for a push towards the $3,400 mark. Similarly, Crypto Bullet pointed out the formation of a symmetrical triangle pattern, indicating a potential breakout in the near future.
One analyst, Merlijn The Trader, sees Ethereum’s chart as “screaming bullish,” pointing out a multi-year base and a clean bullish pennant pattern. According to the trader, this setup could propel Ethereum to a long-term target of $8,000 once it breaks above the $3,000 mark. Additionally, Merlijn suggests that Ethereum is gearing up for its “final pump,” based on its historical price behavior after breaking previous highs in each cycle.
Furthermore, Ethereum Dominance, a metric that measures Ethereum’s market share relative to other cryptocurrencies, is showing signs of strength. Analyst Rekt Capital noted that Ethereum Dominance is holding around the 9% level, signaling a potentially bullish performance in June. This trend indicates that Ethereum could see increased market dominance in the coming month, similar to its performance in 2019.
As of the time of writing, Ethereum is trading at $2,686, representing an 8.8% increase in the weekly timeframe. With analysts bullish on Ethereum’s prospects and technical indicators pointing towards a potential breakout, the cryptocurrency appears poised for further gains in the near future.
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