With the cryptocurrency market’s recent developments, Ethereum (ETH) is making significant moves to break out of a bullish formation. Analysts are buzzing with speculation that the digital asset is gearing up to catch up with Bitcoin, reaching for its highs from earlier this year.
Ethereum’s Strategy to Challenge Bitcoin
This week, Ethereum made a notable recovery, reclaiming the $2,500 support level following the market’s recent performance. As the second-largest cryptocurrency by market capitalization, Ethereum has experienced a significant 8.6% increase over the past week. It has successfully transitioned from the $2,300-$2,400 range to the $2,600 mark.
In the last 24 hours, Ethereum has tested the $2,600 resistance level, establishing it as a support zone while striving to surpass the $2,700 price range. This area is critical, as Ethereum has not successfully breached it in nearly three months. Crypto analyst CryptoWolf highlighted that Ethereum has faced rejection at this level twice since the market crash in August, marking it as the next major resistance to overcome. Once Ethereum clears this zone, its price is anticipated to head “straight to the 3500s,” with the $3,000 level unlikely to pose a significant challenge.
Similarly, crypto analyst Alex Clay has suggested that the “King of Altcoins” is poised to “catch up on BTC” and potentially rise toward $3,500. According to Clay, Ethereum has completed its local accumulation within the $2,100-$2,700 range and is ready to initiate a bullish short-term trend. Other market observers have also indicated that the market might be nearing a bottom after recent sideways movements, as evidenced by the ETH/BTC chart.
Tony Research noted that the chart implies altcoins are currently undervalued compared to Bitcoin. An upward movement in this chart could positively influence altcoins and their prices. As highlighted by the investor, altcoins might experience substantial growth during the first quarter of 2025, given that historically, the fourth quarter has been Bitcoin’s strongest growth period.
Ethereum’s Breakout from a Bullish Pattern
Analyst Crypto Yapper has observed Ethereum’s efforts to break out from its consolidation formation. The cryptocurrency has been confined within a three-month symmetrical triangle pattern and attempted to breach the upper trendline on Tuesday. Ethereum briefly surged above the trendline, reaching $2,688 before retracing to $2,550. It made another breakout attempt on Wednesday, climbing above $2,630 and stabilizing around the $2,600 support zone.
According to Crypto Yapper, if Ethereum successfully breaks out of this formation, it will target the $2,900 mark next. Regaining this level could propel Ethereum’s price to its March highs, as the $2,900-$3,000 price range was a crucial support zone during the rally’s initial phase.
Notably, seasoned trader Peter Brandt recently identified an inverted Head and Shoulders (H&S) pattern on Ethereum’s chart. He suggested that an H&S bottom is forming, hinting at a potentially massive breakout on the horizon.
As of the current moment, Ethereum is trading at $2,612, marking a 1% increase on the daily timeframe.
