Ethereum (ETH) is currently at the forefront of an impending market rally, as evidenced by a major technical breakout. According to cryptocurrency analyst Jelly, Ethereum recently broke out of a bearish pattern, particularly breaking out of the “falling wedge” and flipping major resistance to support areas.
jelly reveal That Ethereum is currently pushing towards the $4,000 mark makes the possibility of reaching new heights seem even more tangible. This move represents a major shift from previous trends, paving the way for potential record price levels.
Related reading
Bullish Shift: Explaining Ethereum's Breakout from a Falling Wedge
Jelle's latest remarks come during a period of strong performance for Ethereum, with the cryptocurrency showing a 30% increase in value over the past week alone.
Ethereum is at $3,951 at the time of writing, having risen an additional 2.5% in just 24 hours. This notable uptrend underscores growing investor confidence and market momentum that could push Ethereum's value to new highs.
It is worth noting that the falling wedge pattern in technical analysis is a signal that often precedes a bullish market reversal. This pattern is characterized by converging trend lines that meet at a downward slope, and typically ends with an uptrend breakout as buying pressure overcomes selling momentum.
$ Ethereum It broke out of the falling wedge, then flipped key areas to support and is now pushing towards $4,000.
New highs and all-time new highs are next.
higher. pic.twitter.com/pjrk8X2FYA
– Jelle (@CryptoJelleNL) May 27, 2024
Ethereum's recent breakout of this pattern signals a potential reversal of its previous downtrend and the conversion of previous resistance levels into new support, setting up a fundamental bullish sentiment.
This technical advance is crucial because it signals a shift from bearish to bullish sentiment, suggesting that Ethereum may recover from previous lows and embark on a sustainable upward trajectory.
Analysts like Geely see this as a precursor to more aggressive buying behaviour, which could push the asset towards unprecedented price levels.
Wider market sentiment and expectations
The positive outlook for Ethereum is not isolated. Prominent cryptocurrency analyst Davey Mucci pridect The price of ETH may rise to between $9,500 and $12,000.
According to Mucci, this prediction is based on a combination of factors, including increasing political support for cryptocurrencies and the fact that Bitcoin has yet to recover to its all-time highs.
With that said my realistic goal is $ Ethereum It's roughly in the $9.5k to $12k range.
Grant
◆ Increase political support for cryptocurrencies
◆$BTC is barely at its previous ATHs level
◆ Increase adoption $ Ethereum By institutionsI think none of us are optimistic enough about ultrasound money.
– Defi_Mochi (@defi_mochi) May 26, 2024
The adoption of Ethereum by institutional investors is also a crucial factor in the prediction. As more institutions integrate Ethereum into their investment portfolios, its market dynamics are expected to stabilize further, attracting more significant investment flows.
Related reading
Arthur, founder of DeFiance Capital, aligns with this bullish sentiment, predicting that Ethereum price will reach $4,500 soon.
Featured image created with DALL·E, chart from TradingView