The global crypto market experienced notable bearish activity today, with a 1.06% drop in market cap to $2.26 billion and a 6.5% decline in trading volume to $4.46 billion. Ethereum in particular, witnessed a 1.56% with an 11% decrease in trading volume. Over the week, it dropped 2.71% and 10% over the month. Analysts, however, maintain optimism.
In a recent analysis, renowned crypto analyst ZAYK presented a detailed technical analysis of Ethereum (ETH) against USDT over a 12-hour period. ZAYK’s chart reveals two distinct descending channels guiding Ethereum’s price action for several months.
The first channel, spanning mid-March to late April, illustrated a significant downward trend. Ethereum’s price consistently touched the channel’s upper and lower boundaries, indicating strong resistance and support levels within these limits.
As Ethereum navigated through this initial descending channel, it experienced a brief consolidation period followed by a breakout. This breakout, identified by ZAYK, marked a sharp upward movement, suggesting a potential shift in market sentiment.
Following this, Ethereum entered a second, narrower descending channel from late April to the present. This indicated a less aggressive downward trend and signs of price stabilization. The recent price action within this channel suggests the formation of a base.
Ethereum Faces Critical Breakout, Analysts Optimistic
ZAYK’s analysis suggests that Ethereum is currently at a critical juncture. The price has recently broken out of the upper boundary of the second descending channel, hinting at the possible end of the bearish trend and the beginning of a new bullish phase.
ZAYK predicts this could result in a 20-30% price increase, targeting a price range of approximately $3,450 to $4,600. The chart’s green highlighted area represents the target zone for this bullish wave, indicating significant upward potential.
Other analysts have echoed positive forecasts for Ethereum, endorsing ZAYK’s analysis. Crypto market analyst Ali Martinez pointed out that ETH/BTC surpasses the 365-day simple moving average, suggesting an approaching altcoin season.
Michael van de Poppe, another notable crypto analyst, expressed similar views, indicating that Ethereum’s bull market has already commenced and is poised to gather considerable momentum. He anticipates a substantial increase in capital flowing into the Ethereum ecosystem.
The upcoming launch of the spot Ethereum ETF in the US is anticipated to be a major catalyst, driving Ethereum’s price higher in the near term. Additionally, analyst Changelly projects that Ethereum could hit $3,525 within 10 days.
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