According to recent data, Ethereum (ETH) appears positioned for a potential price breakout. ETH has climbed over 4% in the last 24 hours, surpassing the key $2,400 resistance level that has blocked previous rally attempts.
Analysts are voicing optimism regarding Ethereum’s technical setup and prospects in the near term. According to cryptocurrency analyst World of Charts, ETH looks to be consolidating in a “bullish pennant” formation on its price chart. This tightening trading range indicates building momentum that could result in an eventual breakout.
The analyst notes that a successful breakout from this pattern has a price target of around $3,500. However, ETH would first need to take out resistance around $2,320–$2,382 to confirm the start of a new uptrend, which it did at press time.
Will Ethereum reach $3,500 soon?
Meanwhile, crypto trader Skew also highlights the important $2,400 level, stating that a solid close above it on key time frames like the 4-hour chart would signal fresh upside chase potential. Key indicators like the Relative Strength Index (RSI) and stochastics are reflecting plenty of remaining momentum to fuel further ETH gains if key resistance levels can be surmounted.
Ethereum is benefiting from several potential catalysts, including optimism around the network’s ongoing technological developments.
Additionally, there is speculation that a spot Bitcoin exchange-traded fund (ETF) could receive approval from the U.S. Securities and Exchange Commission later this year. This potential regulatory change would make it much easier for mainstream investment dollars to flow into cryptocurrency markets and likely drive increased demand for top tokens like ETH.
With positive fundamental alignment and bullish chart signals, analysts contend that Ethereum appears well-positioned for additional advances.