Ethereum (ETH) has experienced a surge above $2,500 and is now testing a significant supply level, which could trigger a substantial rally for ETH and altcoins. The recent market surge has revived optimism, with investors closely monitoring Ethereum's price movements. A breakthrough of this key area may indicate the beginning of a significant upward trend, possibly heralding an Altseason.
Prominent analysts like Carl Runefelt suggest that Ethereum is on the cusp of a rally from this supply zone, promising bullish momentum for ETH and other altcoins. The coming days are critical in determining whether this anticipated rally will unfold.
Ethereum had been underperforming compared to Bitcoin, making traders question its strength. However, recent performance changes show ETH regaining strength against Bitcoin, indicating a shift in market dynamics.
Carl Runefelt notes that ETH is close to breaking from a bullish triangle pattern, projecting a price target around $3,400. This view aligns with the positive market sentiment and Ethereum's stronger price performance.
Currently trading at $2,611 after a 7% surge, Ethereum needs to reclaim the 200-day EMA at $2,806 to sustain its uptrend. Failure to hold $2,500 could lead to a deeper correction to $2,300.
The next few days are pivotal, as traders await Ethereum’s potential breakout that could rekindle its strength relative to Bitcoin.
