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Ethereum Shifts Gears: Breaks Key Resistance, New All-Time Highs Next

source-logo  newsbtc.com 28 May 2024 03:23, UTC

Ethereum (ETH) is currently at the forefront of an impending market surge, as indicated by a significant technical breakout. According to crypto analyst Jelle, Ethereum has recently emerged from a bearish pattern particularly breaking out from the “falling wedge” and flipping key resistance into support zones.

Jelle reveals that Ethereum is currently pushing for the $4,000 mark which makes the possibility of reaching new heights seems more tangible. This movement marks a significant turnaround from previous trends, setting the stage for potentially record-breaking price levels.

The Bullish Shift: Ethereum Breakout from a Falling Wedge Explained

Jelle’s recent observations come during a period of strong performance for Ethereum, with the cryptocurrency showing a 30% increase in value over the past week alone.

Ethereum stands at $3,951 at the time of writing, having climbed an additional 2.5% in just 24 hours. This notable uptrend underscores the growing investor confidence and market momentum that could drive Ethereum’s value to new records.

BINANCE:ETHUSDT Chart Image by Edyme

Notably, a falling wedge pattern in technical analysis is a signal that often precedes a bullish market reversal. Characterized by converging trend lines that meet at a downward slope, this pattern typically concludes with a breakout to the upside as buying pressure overcomes selling momentum.

$ETH broke out from the falling wedge, then flipped key areas into support & now pushes for $4,000.

New highs, and new all-time highs are next.

Higher. pic.twitter.com/pjrk8X2FYA

— Jelle (@CryptoJelleNL) May 27, 2024

Ethereum’s recent breakout from this pattern signifies a potential reversal of its prior downtrend and transforms previous resistance levels into new supports, laying a foundational bullish sentiment.

This technical progression is critical as it indicates a shift from bearish to bullish sentiment, suggesting that Ethereum might recover from its previous lows and embark on a sustained upward trajectory.

Analysts like Jelle see this as a precursor to more aggressive buying behavior, potentially propelling the asset toward unprecedented price levels.

Broader Market Sentiments And Predictions

The positive outlook for Ethereum isn’t isolated. Notable crypto analyst Defi Mochi predicts that the ETH price could soar to between $9,500 and $12,000.

According to Mochi, this projection is based on a combination of factors, including increasing political support for cryptocurrencies and the fact that Bitcoin has yet to reclaim its all-time high.

With that said my realistic target for $ETH is approximately in the $9.5k to $12k range.

◆ increased political support for crypto
◆$BTC being barely at previous ATHs
◆ increased adoption of $ETH by institutions

I Think none of us are bullish enough on Ultrasound Money.

— Defi_Mochi (@defi_mochi) May 26, 2024

Institutional investors’ adoption of Ethereum is also a critical factor in the prediction. As more institutions integrate ETH into their portfolios, their market dynamics are expected to stabilize further, attracting more significant investment flows.

Arthur, the founder of DeFiance Capital, aligns with this bullish sentiment, forecasting that Ethereum could reach $4,500 shortly.

Featured image created with DALL·E, Chart from TradingView