This article is also available in Spanish.
Following recent market performance, Ethereum (ETH) attempted to break out of a bullish formation. Some analysts believe that the cryptocurrency is preparing to catch up with Bitcoin and is aiming for March highs.
Related reading
Ethereum prepares to challenge BTC
This week, Ethereum managed to reclaim the $2,500 support zone following recent market performance. The second-largest cryptocurrency by market capitalization saw 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 retested the $2,600 resistance level, currently holding it as support as it attempts to reclaim the $2,700 price range. This zone constitutes the next crucial level, as the cryptocurrency has failed to move above it for almost three months.
Market analyst CryptoWolf pointed out that Ethereum has been rejected from the local top around this level twice since the August stock market crash, making it the next big resistance to break.
However, once the zone clears, the price of ETH “heads directly towards 3,500” since the analyst considers that the $3,000 mark “will not have a chance”. Likewise, crypto analyst Alex Clay suggested that the king of Altcoins is about to “catch up to BTC” and hit $3,500.
For the analyst, Ethereum has completed its local accumulation in the $2,100-$2,700 range, and “it is ready to change the short-term trend to an uptrend.” Other market observers also suggested that the market was near the bottom after the sideways moves, based on the ETH/BTC chart.
Tony Research said 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 fourth quarters have historically been the best time for Bitcoin to grow.
ETH tries to break out of an uptrend
Crypto analyst Yapper noted that Ethereum is trying to break away from its consolidation formation. The cryptocurrency is in a three-month symmetrical triangle pattern and attempted to break above the upper trendline on Tuesday.
Yesterday, ETH momentarily broke above the trendline after reaching $2,688, but quickly returned to $2,550. Ethereum attempted another breakout of the symmetrical triangle’s upper trendline on Wednesday, surpassing $2,630 before settling around the $2,600 support zone.
Related reading
For the analyst, Ethereum will then aim for the $2,900 mark if it breaks out of this formation. Returning to this level could propel ETH price towards its March highs, as the $2,900-$3,000 price range was a key support zone during the first leg of the rally.
Meanwhile, seasonal trader Peter Brandt recently highlighted an inverse head and shoulders pattern on the ETH chart. The trader reported that a health and safety bottom was forming, also suggesting that a massive breakout could be imminent.
At the time of writing, ETH is trading at $2,612, an increase of 1% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
