Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is preparing for a potential rally towards the $3,000 mark, a level not towardseen since early February.
This comes despite a tumultuous month in which the altcoin has experienced a nearly 20% decline in price, reflecting broader trends in the cryptocurrency market currently in a bearish phase given global economic concerns.
Can Ethereum Break Through $1,600 For A New Bullish Trend?
Over the past two months, Ethereum’s price has faced substantial headwinds, retracing approximately 67% from its all-time high of $4,878 reached four years ago.
However, recent data indicates a slight recovery, with ETH gaining 9% on a weekly basis and currently trading above the key psychological support level of $1,500. Despite this rebound, trading volumes have dipped to around $12 billion in the past 24 hours, which suggests some caution among investors.
Carl Moon, a cryptocurrency analyst, recently shared insights on social media platform X (formerly Twitter), suggesting that Ethereum is attempting to break out of a descending price channel. He noted, “If there’s enough volume, $ETH might reach $3,000 in the coming days.”
In Moon’s analysis, the $1,500 mark serves as a critical short-term resistance level, while the $1,600 barrier looms as the next significant obstacle that must be overcome for a sustained bullish trend to emerge.
As long as ETH maintains its current position around $1,585 and buying pressure continues, a bullish scenario could unfold, preventing a drop back towards the yearly low of $1,380 reached just last week.
Ascending Triangle Pattern May Lead To Key Support Retest
Adding to the bullish sentiment, market expert Captain Faibik has also indicated in a social media update that the Ethereum price appears to have bottomed out and is poised for a strong rebound.
Faibik projects that ETH could reach the crucial resistance level of $2,150 in the coming days if it successfully breaks out of a broadening wedge pattern, which could signal the beginning of a new bull run for the asset.
Despite these optimistic analyses, challenges remain for Ethereum. Bullish catalysts are currently lacking, and there is no clear direction for the altcoin. Ali Martinez, has pointed out that Ethereum is breaking out of an ascending triangle on the hourly chart.
This pattern could lead to a potential retest of the $1,500 support level in the near term. If this support holds, it would signal a short-term victory for bulls betting on a renewed bullish trend for Ethereum.
Featured image from DALL-E, chart from TradingView.com
