Highlights:
- Ethereum is close to a breakout as symmetrical trading pattern forms
- A breakout could see Ethereum rally to $3000 in the short term
- Rising bullish sentiment in Bitcoin could spill over to Ethereum and trigger a rally
Ethereum has not moved much today. At the time of writing, Ethereum was exchanging hands at $2610.69, representing a drop of 0.13%. Such low volatility is unexpected in the wake of a bullish Bitcoin, which has crossed the $67,000 barrier in under 24 hours.
Advertisement
Technical Analysis – Symmetrical Trading Pattern Indicates a Possible Breakout
Despite the calm, Ethereum could be headed for an explosive rally. Ethereum is currently making a symmetrical trading pattern, regarded as a bullish breakout pattern. Ethereum is expected to break out of that pattern in due course, and a significant price appreciation is expected soon.
Price targets outlined in the charts show that the first target in case of an upside breakout of Ethereum will be $2721.2. This is the first level of significant resistance. However, a move beyond this point may see the cryptocurrency rally upwards and reach $3000.
Bearish Scenario Could Trim Ethereum Price to 2300 USD
Alternatively, if the bears can seize the market, there could be some downsides to Ethereum. In this scenario, the first support level would be at $2505.9. If the price moves below this support level, the price of Ethereum could be as low as $ 2300. Nevertheless, while this bearish scenario exists, the chances are tilted toward an upside breakout.
Bitcoin Rally and Institutional Interest Is Driving Bullish Sentiment
First, Bitcoin is turning bullish and that’s a plus for the broader market. Bitcoin is trending towards its all-time highs, and if this trend extends, the whole crypto market will probably turn green. This is especially the case for Ethereum, which in the past, has benefited whenever Bitcoin rallies.
Ethereum ETFs – Limitless Opportunities for Institutions
Another rationale for projecting a bullish Ethereum is Ethereum exchange-traded funds. Using these ETFs, institutional users can gain more convenient exposure to the Ethereum market. With institutional clients pumping in and out of the crypto economy, a spike in the price of Ethereum is likely to attract more whale buyers. This institutional inflow of funds could equally create FOMO among retail investors, and help push the price of Ether higher.
Blackrock CEO Larry Fink declares Bitcoin an asset class and a rival to gold – https://t.co/Jm9jPzkhBM pic.twitter.com/9fntaJcbQn
— Nairametrics (@Nairametrics) October 15, 2024
Conclusion – Price Pump Expected Soon, Maybe in Days
While Ethereum is calm today, the technical outlook and market environment indicate an imminent breakout. Ethereum’s technical topology depicts a symmetrical trading pattern. This is indicative of a possible bullish breakout soon. If Ethereum rallies and pushes through the $2721.2 resistance, it could easily target $3000 in the short term.
However, should there be bearish sentiments in the market, Ethereum will extend to $2505.9 and quite possibly lower at $2300. Nonetheless, the likelihood of a bullish breakout is high. This is thanks to Bitcoin’s price rally and Ethereum ETFs that make for an easy entry into Ethereum. Investors should be keen on this breakout as it could mark the beginning of the Ethereum bull run for 2024/25. In such a case, prices as high as $10k could be on the cards.
Advertisement
