- Ethereum and altcoins break out of the long-term pattern for a strong bullish momentum into a major rally.
- TOTAL2 breaks above key resistance after consolidating for years, reflecting regained investor confidence in the altcoin market.
- Ethereum tests critical levels near $2,968 but could rebound toward $3,300, while historical support is suggesting a bull continuation.
Ethereum and alternative cryptocurrencies (TOTAL2) have broken out of a massive long-term pattern. This setup could mirror the explosive 2017 bull run. The breakout signals strong bullish momentum, potentially leading to a major rally. The recent price action suggests that the market has entered a new expansion phase. Consequently, investors are closely watching key technical levels for confirmation.
Ethereum and Altcoin Market Breakout
TOTAL2, which tracks Ethereum and altcoins, recently breached a crucial resistance level. This breakout follows years of consolidation within a symmetrical triangle pattern. Historically, such formations indicate accumulation phases before strong upward moves.
From 2016 to the beginning of 2018, it went parabolic then the price sharply fell into a long consolidation from 2018 until 2020. The breakout in 2021 fired up another rally that reached new highs. However, a corrective phase soon followed, forming a tightening consolidation pattern.
Recently, TOTAL2 surpassed a key resistance level, signaling renewed bullish sentiment. A projected upward trajectory suggests that altcoins could experience another strong rally. Additionally, the correlation between liquidity and crypto valuations strengthens the bullish outlook. As liquidity expands, alternative cryptocurrencies stand to benefit significantly.
Ethereum’s Price Action and Market Sentiment
The bullish breakout in the altcoin market is consistent with Ethereum's price behavior. After a lengthy downward trend, ETH found support close to $2,200. This level acted as a launchpad for a breakout that propelled the price near $4,000.
However, ETH has since faced resistance and a pullback, testing the $3,200-$3,300 zone multiple times. The price recently declined below a crucial support level, reaching approximately $2,968.58. Despite the dip, key indicators suggest a potential reversal.
A projected price path indicates a rebound towards the $3,200-$3,300 region. If Ethereum reclaims this zone, it could target higher resistance near $3,600. Additionally, historical price behavior shows strong reactions at major support levels. This strengthens the case for a potential bullish continuation.