Crypto enthusiasts are once again demonstrating their confidence in Ethereum, the second-largest digital asset capability in the ongoing cycle, with some experts predicting that ETH could be witnessing a historical price rally to unprecedented heights at the peak of this bull cycle. These experts point to past market trends and ETH’s robust growth as key markers of its long-term potential.

Ethereum’s Massive Rally May Hinge On Key Breakout

Ethereum’s price could be set for a historical run as a crypto analyst and investor, Trader Tardigrade, has predicted a major breakthrough for ETH to a new all-time high, particularly the $10,000 milestone in the current bull cycle.

The market expert shared the audacious prediction on the X (formerly Twitter) platform, which is part of a larger belief that the altcoin could spearhead the much-anticipated altcoin season. Trader Tardigrade made the forecast after observing ETH’s performance from several previous breakouts from a Symmetrical Triangle pattern on an Ascending Trendline.

In the X post, the analyst highlighted that the altcoin is currently trading on an ascending trendline with symmetrical triangles, potentially signaling the start of a significant price surge. Specifically, this pattern emerges when a descending line connecting the highs and an ascending line connecting the lows converge, which suggests a period of consolidation prior to a possible downward or upward breakout.

According to Tardigrade, since 2022, Ethereum has formed about 3 symmetrical triangles on the ascending trendline. The first breakout for the bullish pattern led to an over 70% price increase, and the second breakout from the formation triggered a more than 140% upswing for the crypto asset.

Meanwhile, Tardigrade noted that the altcoin has broken out of the third symmetrical triangle. As a result, the expert predicts ETH might reach the $10,000 milestone if the current breakout produces an over 280% increase, which is projected to be twice as much as the previous upswings.

Considering several positive developments seen around ETH and the Ethereum blockchain network, coupled with bullish market sentiment, this symmetrical triangle breakout could act as a trigger for explosive growth in the upcoming months.

ETH’s Recent Upside Price Momentum Turns Bearish

Today, the general crypto market saw a negative move, halting the renewed momentum of major cryptocurrency assets like Ethereum. The downswing seems to have sparked a bearish outlook for ETH as the altcoin is approaching the $2,600 level once again since last Thursday.

ETH is presently demonstrating a nearly 3% decline in the last 24 hours, bringing its value to $2,632. This bearish movement has impacted investors‘ and traders’ confidence in ETH, highlighted by a decrease in its market cap and trading volume by about 2.65% and 13.83% in the past day.

Featured image from Unsplash, chart from Tradingview.com

• Ethereum price traded near $2,600 as crypto experienced a brief lull.
• A CryptoQuant analyst says ETH could witness a short squeeze, but points to $2.7k as key resistance.

Ethereum traded to near $2,750 on Monday, Oct. 21, rising amid broader gains for the crypto market as Bitcoin shot past $69,000. However, with BTC dipping, the ETH price followed suit and tested support near $2,600 on Oct. 22.

The price of Ethereum has returned above $2,620, and a CryptoQuant analyst says the top altcoin could see a short squeeze scenario. According to Shayan B, this outlook results from the rising leverage. If the bulls manage to break out above the supply wall around $2.7k, then ETH price could rise further.

Ethereum price outlook

Currently, the market seems bearish on ether price prospects, which means many traders expected a downside continuation. But with “leverage at concerning levels,” a short squeeze would mean unexpected price surge and major liquidations.

ETH would notch gains in such a case.

“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event. In such a scenario, if ETH’s price rises unexpectedly, traders with short positions could be forced to cover their positions by buying back ETH, creating an impulsive price spike,” the analyst noted.

The key level however remains at the 100-day moving average near $2,700. This area presents a notable resistance area that bulls may have to conquer to see further gains.

Ethereum Faces Short-Squeeze Risk: Rising Leverage and Key Resistance at $2.7K

“With leverage at concerning levels, the futures market is now considered overheated. This leaves Ethereum vulnerable to a potential short-squeeze event.” – By @ShayanBTC7

👇https://t.co/LBeV3Lis4d pic.twitter.com/wUZ2sEowmW

— CryptoQuant.com (@cryptoquant_com) October 22, 2024

Data from Coinglass showed total 24-hour crypto liquidations stood at over $165 million.

Most of this, about 75% were long positions rekt over the past 24 hours at $129 million. Shorts accounted for about $36 million. Looking at Ethereum, data showed longs accounted for $36 million of the total $39 million liquidated over the past 24 hours.

ETH price reached its year-to-date peak of $4,070 in March.

Ethereum (ETH) trades above $2,600 after a 5% retrace from local highs around $2,750. Over the past two weeks, ETH has maintained a bullish trajectory, sparking optimism across the market as investors look for further signs of strength in the price action.

Top analyst and investor Carl Runefelt recently shared a technical analysis, highlighting that Ethereum has broken out of a bullish pattern that began forming in early August. According to Runefelt, once ETH confirms solid demand around its current level, it’s only a matter of days before the next rally kicks off.

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With the broader crypto market gaining momentum, Ethereum is positioned to continue climbing, and investors are closely watching for confirmation of support at this key level. If ETH holds, the next leg up could be targeting higher price zones, adding to the bullish sentiment. The coming days will determine whether Ethereum can resume its upward trend and capitalize on the ongoing market strength.

Ethereum Pushing Above $2,600

Ethereum has underperformed compared to Bitcoin this year, leaving many investors concerned as the next bull run approaches. While Bitcoin has surged, Ethereum has struggled to rally with the same strength. This has sparked worry among ETH holders, who expected the second-largest cryptocurrency by market cap to lead the charge.

Top analyst Carl Runefelt recently shared a compelling analysis on X. The analysis features a price chart that reveals Ethereum breaking out of a symmetrical triangle on the daily timeframe—a classic bullish pattern. 

If price action holds, it could send ETH to $3,400, according to Runefelt’s analysis. This breakout is a key signal for Ethereum, but its sustainability depends on whether the price can successfully retest the upper triangle line, which had previously acted as resistance.

Currently, Ethereum is testing support at this critical level, with $2,600 being the line in the sand. A close below $2,600 would invalidate the symmetrical triangle’s bullish thesis and could lead to further downside, putting a dent in the optimism surrounding ETH’s future price action. 

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However, if Ethereum holds above this level, it could signify that the breakout is intact, setting the stage for a strong rally as the broader market prepares for a bull run. The next few days will be crucial for ETH’s trajectory.

Price Action: Technical Levels To Watch 

Ethereum is at $2,620 after failing to reclaim the 200-day exponential moving average (EMA) at $2,795. The price is testing support around the crucial $2,600 level, which will determine the direction of ETH’s price action in the coming days.

If Ethereum holds above this level, the next target would be back above the 1D 200 EMA at $2,800. This is a crucial price zone as it aligns with ETH’s local high set in late August at $2,820.

A successful breakout above $2,800 would signal a strong bullish continuation, making a push toward higher levels imminent. However, if ETH fails to consolidate above $2,600, the risk of a retracement to lower demand zones becomes increasingly likely. 

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Traders and investors closely watch these levels as Ethereum seeks to regain momentum amid broader market uncertainty. The next few days will be critical in determining whether ETH continues its upward trend or faces further downside pressure.

Featured image from Dall-E, chart from TradingView