Sui (SUI) has dropped over 8% in May, while Ethereum (ETH) is consolidating sideways. Both altcoins show potential for bullish breakouts. SUI has a falling wedge pattern pointing to $4.20, while ETH is forming a cup-and-handle pattern with an upside target of $2,500-$2,600. Key EMAs support potential price rises.
Sui (SUI) and Ethereum (ETH) have had somewhat of a rough start this May. SUI has tumbled over 8% already, while ETH appears to be caught in a sideways movement, reflecting traders’ hesitance regarding its next move. Yet, there are some bullish technical setups suggesting both altcoins could be gearing up for breakouts if conditions align just right.
Recently, SUI experienced captivating price dynamics, surging from about $2.20 at the end of April to heights exceeding $3.60, before entering a consolidation period. As it stands on May 6, the token is trading around $3.23, which is a decline of over 5%. Notably, the overall technical setup remains on the bullish side.
When analysing the daily chart, a falling wedge pattern stands out, featuring two descending trendlines that meet at a point. Such formations usually hint at diminishing selling pressure and set the stage for a potential bullish breakout. Should SUI manage to break above the upper trendline with solid volume, estimates suggest a target around $4.20, signifying a possible 30% upswing from current levels, provided the market supports this momentum.
Adding to the bullish sentiment, SUI maintains its position above crucial 50-day and 200-day exponential moving averages (EMAs), pegged at approximately $2.84 and $2.83, respectively. This indicates that buyers are actively defending these essential support levels.
On the other hand, Ethereum has not been as compelling in May, yet signs point towards a possible breakout in the making. Currently trading close to $1,777, ETH is down about 2.4% on the day, but its recent movements have completed the ‘handle’ part of a classic cup-and-handle pattern. This setup is frequently associated with bullish continuation, especially following a long downtrend.
The daily chart illustrates that ETH’s cup bottomed out around $1,650, climbed to the neckline near $1,900, and is now forming the handle — this slight pullback often flushes out weaker investors before any upward momentum resumes. The expected breakout target from this cup-and-handle arrangement hovers within the $2,500 to $2,600 range, revealing a dramatic upside potential of approximately 40% from the current prices.
However, it is crucial for ETH to surpass its 50-day EMA ($1,851) and set its sights on the 200-day EMA ($2,438) to authenticate the pattern’s legitimacy.
In conclusion, both SUI and ETH present intriguing setups with potential for significant breakouts if they can successfully navigate essential resistance levels. These findings come from insights by Yashu Gola, a crypto journalist and analyst, who has a keen focus on digital assets and blockchain dynamics. His expertise bridges the realms of traditional finance and cryptocurrency, offering valuable analysis and education to stakeholders.
