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

The Ethereum price has just broken out of a key symmetrical triangle pattern, signaling a potential surge to new levels above $3,000. The recent breakout is seen as a bullish indicator for the top altcoin by analysts who have closely watched the Ethereum price action for the past few months.

Ethereum Price Breaks Out Of Key Triangle Pattern

A popular crypto analyst identified as “TheMoonCarl” on X (formerly Twitter) has disclosed that the Ethereum price has finally broken out from its symmetrical triangle pattern. Sharing a chart illustration of the distinctive technical pattern, the analyst revealed to his 1.3 million followers that the symmetrical triangle pattern had begun forming in August 2024, extending through September and October to potentially reach a peak around December.

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However, before Ethereum could reach this designated endpoint, its price broke through the upper trendline of the triangle, indicating a potential bullish breakout to new highs. A symmetrical triangle is a key technical pattern that often indicates a period of consolidation followed by a breakout to the downside or upside. 

In Ethereum’s case, its price has been on a major consolidation trend, failing to experience similar price surges seen in Bitcoin and other altcoins.  With the now broken triangle pattern, TheMoonCarl is setting new bullish price targets at around $3,400 for Ethereum. 

At the time of the symmetrical triangle breakout, Ethereum was trading at around $2,707. However, as of writing, the cryptocurrency has declined by 3.15%, pushing its current price to $2,629, according to CoinMarketCap. While the analyst is highly optimistic about his $3,400 Ethereum price projection, the cryptocurrency will still have to see a 29.91% increase to achieve this feat.

TH Whales Are On The Move

Amidst analysts’ bullish predictions for Ethereum and its recent breakout from a key symmetrical triangle pattern, reports have revealed that large-scale investors, typically referred to as “Whales” are now back in action. 

Whale Alert, a blockchain tracker and analytics system revealed a series of substantial whale transactions involving the Ethereum token. In the last 24 hours, an Ethereum whale had moved a whopping 12,590 ETH tokens, worth approximately $33.8 million from an unknown wallet to Coinbase. 

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Additionally, in the past few hours, another Ethereum whale had transferred 8,452 ETH tokens valued at $22.4 million from an unknown wallet to Binance. Typically, when whales move coins from their private wallets to a centralized exchange, it often indicates that they may be selling off their tokens. 

While a full-blown sell-off could cast a shadow on Ethereum’s already slow price momentum, it appears that whales are not only moving ETH to exchanges but also potentially accumulating tokens. Whale Alert has reported that an anonymous whale recently moved 8,811 ETH from Binance to an unknown wallet. 

These multiple transactions create uncertainty about whether whales are selling more than they are buying. However, with Ethereum’s recent breakout from its symmetrical triangle pattern, bullish momentum could push prices higher, potentially encouraging more buying activity. 

Featured image created with Dall.E, 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.