Ethereum (ETH) is currently in the news as market analyst Michaël van de Poppe states that the technical situation is significant this time. The trading pair has reached a new high over multiple months after breaking a major resistance level.
This breakout indicates that Ethereum is rising against Bitcoin and that we are also experiencing the next breakout in the market, which will be led by altcoins.
Important Breakout Above 0.02425
Van de Poppe added that the ratio of the price cleared the critical 0.02425 region, which, according to him, is the threshold of a new bullish push.
Breaking this barrier shows that Ethereum buyers have dominated the selling side, which opens the possibility of additional increases against Bitcoin.
Another reason that Van de Poppe highlights is that its rapid rise of about 50% in a short period of a few days underscores the power behind this move.
Pattern Confirmation and Entry Zones for ETH
Traders can look at two opportunity zones for Ethereum entry: 0.022, which is conservative, and 0.0250, which is aggressive in terms of positioning.
Van de Poppe also observes that Ethereum already has a textbook cup-and-handle pattern on the token chart, which is a typical bullish continuation pattern.
A move above the handle would indicate the sellers are prepared to take the pair higher, and then volume generally confirms a breakout.
It Can Be Followed by Other Altcoins
According to one of the market analysts, other altcoins will follow suit as Ethereum closes in on Bitcoin. In the history of the ETH/BTC trade, there were bigger rallies when the pair got above 50%, as investors have been moving funds into the assets with a higher level of risk and returns.
As the token reaches new heights, smaller projects can expect some of the traded activity and liquidity to be gained back due to confidence.
The Next Resistance Is Around $4,000
The current Ethereum price is around $3,150. Van de Poppe identifies a following major resistance of $4,000. In case the token breaches, it would translate into additional institutional capital and bullish prospects for it and other altcoins.
When the prices decline to important support areas, traders can begin to take profits.
All the attention of traders and investors will be focused on this big pair and the broader altcoin picture to ensure that the recent price rally is no false alarm but a real start of a new uptrend, as the market has looked heavily bullish since the start of the month.
