The price of Ethereum (ETH) recently reclaimed the upper boundary of its multi-week range, breaking above the $2,800 resistance level. At press time, Ether sits at $2,818, with its market capitalization now up to $338.8 billion. The cryptocurrency market seems to be rebounding from its recent slump. Bitcoin (BTC) has reclaimed the $108,000 mark and is inching closer to hitting $110,000 once again. BTC hitting $110,000 could lead to another market-wide rally, causing the likes of ETH to follow.
One indicator hinting at a potential Ethereum breakout outside of Bitcoin’s rally has been the ETH relative strength index (RSI). Crypto analyst Merlijn highlights that the market experienced a “fakeout” below key support, which was immediately followed by a bullish reversal and breakout. A visible RSI downtrend was also breached, signaling renewed strength in momentum.
The chart above, shared by Merlijn shows an ascending triangle pattern—marked by rising lows and flat resistance—that culminated in a breakout. According to the analyst, the shakeout phase is now complete, and the breakout sets the stage for a vertical rally, potentially targeting the $3,600–$3,800 range in the near term.
Also Read: BlackRock Sold Bitcoin And Bought Ethereum: Should You Too?
Additionally, ETH’s rally could be due to increased investor sentiment. President Trump has been calling for an interest rate cut. Market participants also anticipate the Federal Reserve to cut interest rates soon. A rate cut could lead to a surge in risky investments. ETH and other crypto assets could experience a rally under such circumstances.
According to the analysts at CoinCodex, ETH will continue to rally over the coming days. The platform anticipates the asset to breach the $3000 mark on June 21. CoinCodex does not anticipate ETH’s rally to stop at the $3000 mark. The platform predicts ETH will trade at $4445.39 on Aug. 26. ETH has not traded above the $4000 mark since December 2024. The asset’s price will rally by 65.97% if it hits the $4445.39 target. However, this is just a prediction, and anything could reverse the breakout sentiments and send Ethereum back down.