Ethereum (ETH) may be en route to retesting a multi-year resistance zone for the third time after holding its long-term accumulation support.
Pseudonymous analyst Crypto Patel tells his 68,000 followers on X that Ethereum flashed a similar setup in 2020 before rallying to its cycle high close to $5,000.
“ETHEREUM BIGGEST BREAKOUT SETUP YET?
ETH is retesting a multi-year resistance zone for the 3rd time after holding its long-term accumulation support.
A breakout could open the path toward $5K – $10K – $15K.”
Looking at a potential catalyst for a strong Ethereum run, Fundstrat’s Tom Lee says he believes Ethereum “is the future settlement rails for Wall Street and AI.”
Lee also believes that Ethereum could spark a rally that will trigger sidelined investors to jump in.
“We think the asset with the most FOMO in Sept and into year-end will be crypto, particularly ETH.”
Meanwhile, another crypto analyst, Credible, believes that ETH could witness a slight correction below $2,500 before surging to $2,800.
“ETH has pulled back as expected, but I think there is a chance we may not yet be ready to take that downside liquidity just yet.
I like the idea of grinding higher and roping in some more longs before the eventual flush.
When we get these triple-tap bases, we will often pull back to the right ‘shoulder’ or local demand formed by the 3rd ‘tap’ before seeing continuation higher.
So while we’ve seen a deep pullback thus far, it is nothing that we can’t recover from if we are indeed going to continue a bit higher before the eventual flush.
On the upside, I have my eyes on the $2800+ region, which is local supply.”
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