Key Points
- Ethereum’s price successfully broke out to reach a high of about $2,750, outperforming Bitcoin.
- The breakout signals the potential beginning of an ‘Altseason’ in the cryptocurrency market.
After retesting at a critical resistance level of approximately $2,620 last week, Ethereum (ETH) experienced a successful price breakout, reaching a high of around $2,750.
The altcoin, which has a fully diluted valuation of about $329 billion and a daily average traded volume of around $17 billion, saw a nearly 4% increase in the last 24 hours to trade around $2,739 on Monday, October 21.
Market Dynamics and Future Outlook
In the past day, over $27 million was liquidated from Ethereum’s leveraged market, predominantly involving short traders. This development significantly increases the chances of a short squeeze in Ethereum’s price in the coming days, potentially leading to further upward volatility.
The crypto market is anticipated to perform better in the coming days due to rising speculation of a bullish October. The Federal Reserve is also expected to initiate another rate cut soon, particularly with the 2024 US general elections approaching. This scenario is generally seen as favorable for cryptocurrencies.
The crypto market is likely to follow the bullish breakout observed in the precious metals market, led by Gold and Silver.
Ethereum Outshines Bitcoin
For the first time in months, Ethereum has outperformed Bitcoin in the bullish breakout, despite the significant difference in spot ETF cash inflows. Over the past 24 hours, Bitcoin’s price increased by around 1% to approach a multi-week high of over $69K.
The noticeable difference in gains between Bitcoin (BTC) and Ethereum over the last 24 hours has shifted focus to the altcoin space. Leading altcoins such as Solana, Shiba Inu, and Dogecoin have already broken out of a macro consolidation that began in March.
With Bitcoin’s dominance reaching a psychological resistance level of around 59%, many experts believe a reversal favoring the altcoin space is imminent.
According to trader Peter Brandt, Ethereum is well positioned to rally towards its all-time high in the near term after a successful bullish breakout. Brandt noted that Ethereum’s price has rebounded from a potential inverted head and shoulders pattern, coupled with a bullish divergence in the daily Relative Strength Index.
Most importantly, Ethereum’s price against Bitcoin has established a potential double bottom, along with bullish divergence on the daily RSI. As a result, Ethereum’s price could soon rally above $3K, with a midterm target range of between $3.5K and $4K.
