- Ethereum’s ETF approval is imminent, potentially driving ETH to break its current resistance levels and reach $5,000.
- The analyst has highlighted a critical bull flag pattern for Ethereum, with key resistance at $3,200 and potential support at $2,400.
- ETH/BTC continues to hit new lows, but a bullish RSI divergence indicates potential for a market reversal.
According to a recent analysis by Crypto Patel, Ethereum is on the brink of a significant market movement. As the approval date for an Ethereum ETF approaches, the cryptocurrency is encountering a major resistance level at $3,100. The analyst suggests that if ETH can surpass the $3,200 mark, it may set a path toward a new all-time high of $5,000.
This key moment comes as Ethereum forms a bull flag pattern, indicating potential for a strong upward trend. Investors are closely monitoring this pattern, as a breakout above the $3,200 resistance could signal a substantial price surge.
However, the market remains cautious. If Ethereum fails to break through the $3,200 barrier, it could decline to around $2,400. This critical threshold makes the upcoming period vital for Ethereum’s market performance.
However, according to market expert Charting Guy, ETH/BTC continues to hit new lows, but the Relative Strength Index (RSI) reveals a bullish divergence. This pattern suggests that despite the falling price, buying momentum is increasing. Since October, this divergence has been a persistent feature, indicating a potential upward shift for ETH/BTC.
Meanwhile, BTC dominance has been on the rise, consistently hitting higher levels. However, the RSI for BTC dominance shows a bearish divergence, which means that despite the increasing dominance, the buying momentum is waning. This pattern has also been consistent since October, hinting at a possible reversal in BTC’s market dominance.
The contrasting RSI patterns for ETH/BTC and BTC dominance are significant. ETH/BTC’s bullish divergence suggests that Ethereum might see a rise in value relative to Bitcoin. On the other hand, the bearish divergence in BTC dominance indicates that Bitcoin’s market dominance could weaken, potentially allowing other cryptocurrencies to gain more market share.
As of press time, Bitcoin and Ethereum exhibit bullish signals. Bitcoin is trading at $66,380, up by a mere 0.25%, while Ethereum trades at $3,035, recording a daily surge of 1.30% on the daily timeframe charts, as per CoinMarket Cap data.
