Bitcoin (BTC) has broken out of its recent consolidation zone between $57,000 and $62,000, signaling that a rally could be on the horizon. As of press time, Bitcoin has been trading at $63,880, indicating a 0.02% increase in the past 24 hours. Meanwhile, Ethereum (ETH) is edging closer to a crucial resistance level at $2,850, which, if surpassed, may trigger a bullish move.
Renowned crypto analyst Jelle recently shared his insights on X, noting that Bitcoin spent the weekend fluctuating around the $64,000 mark. He suggested that a minor correction to around $62,700 could benefit the cryptocurrency. According to Jelle, this pullback might offer a stronger base, setting the stage for Bitcoin to regain its upward trajectory and possibly ignite the next phase of the rally.
On the other hand, Ethereum has been facing considerable challenges in surpassing key resistance levels, which has kept it from making significant upward strides. In a recent X post, crypto analyst Crypto Tony emphasized that he would only contemplate entering a new position in Ethereum, if the cryptocurrency recovers the crucial $2,850 level. Until then, he remains hesitant, waiting for a clearer signal of strength before moving further.
Ethereum’s price faces resistance around the 50% price retracement level at $2,843, which aligns with the daily resistance level at $2,927, and the 50-day Exponential Moving Average (EMA) at $2,905. As of press time, Ethereum is trading at $2,742, down by 0.47% over the past 24 hours.
For Ethereum to initiate a bullish rally, it must break above the $2,843 level and close above the daily resistance at $2,927. If this occurs, ETH could see an 11% rally, potentially retesting its weekly resistance level at $3,236.
However, the daily chart’s Relative Strength Index (RSI) and Awesome Oscillator (AO) are currently trading just below their neutral levels of 50 and zero, respectively. Both indicators need to move above their neutral thresholds for the bullish momentum to continue.
Ethereum Resilience: Will It Break $2,850 and Reach $3,200?
On the flip side, if Ethereum fails to hold its current levels and breaks below the ascending trendline, it could invalidate the bullish outlook. Such a move could lead to a 4.6% decline, potentially pushing ETH back to its low of $2,510, as seen on August 12th.
While Bitcoin has broken out of its consolidation phase and seems poised for further gains, Ethereum is at a critical juncture. The next few days would be crucial for both cryptocurrencies as traders watch for potential breakouts or reversals that could define their short-term trajectories.
