Ethereum Eyes 15% Movement as It Tests Key Resistance Levels

Ethereum (ETH) is currently retesting a significant resistance level, demonstrating a daily recovery of approximately 3%. Despite this upward movement, the cryptocurrency encountered rejection from the same resistance area since the market’s recovery last month, failing to sustain its bullish momentum. As Ethereum’s price remains caught in a sideways trading pattern, analysts suggest that a notable 15% price move could be on the horizon.

Ethereum’s Current Price Action

Since its breakout in early May, Ethereum has been oscillating between the price range of $2,475 and $2,680. The cryptocurrency has struggled to transform the upper boundary of this range into a support level for nearly a month. After experiencing a market pullback last week, Ethereum retraced approximately 11%, declining from a three-month high of $2,788 to the lower boundary of its current trading range. However, it found support there, indicating potential resilience, and managed to reclaim the $2,500 mark at the beginning of the week.

As of mid-week, Ethereum’s price surged by 3.2% towards the local range high resistance but later retraced to around the $2,635 level. Technical analyst Carl Runefelt from The Moon Show noted that Ethereum is “showing confidence” by maintaining its position within a critical chart formation over the daily timeframe. This pattern is identified as an ascending triangle, with the upper resistance line hovering between $2,680 and $2,700. Such formations typically indicate bullish sentiments, suggesting potential for upward price movements.

Implications of the Ascending Triangle

The construction of the ascending triangle implies that Ethereum’s price has been consolidating and compressing between critical support and resistance levels, indicating a possible breakout. In this context, if Ethereum manages to breach the upper resistance line decisively, the potential for a 15% upward movement could materialize, propelling prices toward the $3,100 level as forecasted by Runefelt.

Yet, if Ethereum faces another rejection at this resistance level, the consequences could lead to a retreat towards the $2,300 support zone. Crypto trader Crypto Bullet echoed similar sentiments, indicating that multiple charts reveal analogous patterns, suggesting an imminent breakout of 15% to 20%. It is noteworthy that the ETH Dominance metric appears poised to break out from an ascending triangle pattern in the 12-hour chart, alongside the ETH/BTC and ETH/USD trading pairs testing the upper boundaries of symmetrical patterns.

Higher Resistance and Potential Market Dynamics

Analyst Crypto Jelle highlighted that reclaiming the critical resistance range of $2,680 to $2,850 could send Ethereum towards new upward trajectories, suggesting that the crypto’s pricing dynamics may reflect a broader bullish sentiment across financial markets.

Moreover, Ethereum’s price behavior during this cycle has drawn parallels to Bitcoin’s (BTC) price action in 2020. Analyst Ted Pillows pointed out that Ethereum has formed four consecutive two-week candles since the bottom on April 7, mimicking Bitcoin’s price patterns following its crash in March 2020. This likeness raises speculation that if Ethereum progresses in tandem with Bitcoin’s trajectory, it might set new all-time highs (ATH) in the coming months.

Technical Analysis and Market Sentiment

Market analyst Merlijn The Trader has also noted the structural parallels between Bitcoin and Ethereum, arguing that ETH’s current configuration “screams one thing: Jump. Across. The. Creek. The breakout is coming.” As of the latest data, Ethereum is trading at $2,632, showing a robust 44.2% increase over the past month. This bullish performance contributes to a growing market sentiment that suggests optimism for the broader cryptocurrency market.

Conclusion

As Ethereum approaches key resistance tests, market observers will be vigilant. The possibility of a 15% breakout movement remains on the table as technical indicators align favorably, while the historical context of past market cycles offers further credence to potential bullish outcomes. The dynamics between price movements, resistance levels, and broader market conditions will ultimately dictate Ethereum’s trajectory in the short term.

Disclaimer: The information provided herein is for informational purposes only and should not be construed as financial advice.

Source: newsbtc