Ethereum (ETH) shows potential for price increase, possibly reaching $3,450, as bullish indicators emerge. Analyst Dan Gambardello highlights whale accumulation and positive oscillator trends. A multi-year symmetrical triangle could influence ETH’s trajectory, needing to break resistance at $2,700-$2,800. Global liquidity trends may support this bullish outlook, affecting the overall altcoin market amidst historical fears.
Ethereum (ETH) is showing signs that it might be gearing for a significant price increase, possibly reaching around $3,450. Analyst Dan Gambardello has shared some intriguing insights in his recent market breakdown. He states that, right now, Ethereum bulls definitely seem to have the advantage. Particularly noteworthy are the momentum oscillators, which are beginning to show bullish trends for the second-largest cryptocurrency in the market. Moreover, there’s a notable uptick in whale accumulation for ETH, suggesting that large investors might be setting the stage for a potential price rebound.
It appears we may be at a crucial junction for Ethereum’s market cycle. Several indicators, including Gambardello’s proprietary “bull bear arena” indicator, imply that the market could be bottoming out. He emphasised the significance of this moment, mentioning the various momentum oscillators flipping positive for ETH. This shift isn’t trivial; it’s reminiscent of similar bullish patterns observed during previous market cycles. For context, he compared the current indicators to those seen in August-September of the last cycle, just before Ethereum’s considerable price rally in November.
While Gambardello remains cautious, he acknowledges that these momentum shifts historically precede broader market movements. There’s further support for this bullish scenario in the form of whale activity data, which shows substantial accumulation at current price levels. Gambardello’s comparisons to historical inflow patterns might indicate that a market bottom is emerging, paving the way for a bullish turnaround.
The price action of Ethereum is also nearing a significant technical formation—a multi-year symmetrical triangle. Gambardello is keenly observing this formation, hoping to see it break from the pattern, leading to what he describes as a “busted pattern.” This scenario would ideally involve Ethereum pulling back to the apex of the triangle before shooting upwards, signalling a bull market for not just Ethereum but possibly altcoins as well. He considers the range between $2,700 and $2,800 as crucial resistance levels that Ethereum must clear to confirm this bullish trend.
Looking beyond Ethereum, Gambardello points to global liquidity trends that might be favourable for a breakout. He refers to trends in M2 global liquidity, which over a 108-day lag time seems to indicate conditions favourable for Ethereum’s price appreciation. This macro-liquid index has historically correlated well with significant shifts in cryptocurrency market trends. If Ethereum can break and retest the symmetrical triangle pattern, it would reinforce a bullish outlook for ETH and potentially the broader altcoin sector.
As Ethereum’s position continues to shape the market, its price movements might indicate wider trends within the altcoin sphere. Gambardello believes that Ethereum’s price actions can influence the overall altcoin market behaviour, particularly during low points, akin to previous cycles. He’s closely studied altcoin market charts over recent months and sees patterns that mirror previous major lows, coupled with a pervasive sense of fear amongst investors, like those seen before pivotal drop events like the tariff fears in 2018 or the panic during the COVID-19 outbreak in 2020.
Gambardello expressed a genuine bullish sentiment about the current crypto landscape, citing robust data revealing that momentum indicators were peaking at lows similar to those during significant downturns. The RSI for altcoins currently hovers around 37, akin to the lows during the COVID-19 market crash, a potential indicator of a bottoming out. The immediate resistance for the altcoin market seems to lie at the 50-week moving average, with the second critical hurdle being the 20-week average around the $1.2 trillion market cap, necessitating a 14-15% move to break through.
All in all, the outlook surrounding Ethereum feels cautiously optimistic—bears seem to be losing ground, and the stage might be set for a resurgence in price, not just for ETH but for various altcoins as well.
