Ethereum Price Tops $3,100: Mega Wedge Breakout Imminent

After a prolonged period of weakness for a year and a half against the Bitcoin price, the Ethereum price is currently showing strength again and could be set for an explosive move, according to several renowned analysts.

Ethereum/BTC Chart Is A ‘Stunner’

In an analysis of the ETH/BTC trading pair, renowned financial expert Raoul Pal has brought to light a compelling dual-chart pattern. The formation of both a “mega wedge” and an inner descending channel is setting the stage for what might be a significant breakout for Ethereum when priced in Bitcoin. Pal stated:

The ETH/BTC chart is an absolute stunner…and ready for the next big move, the break of the mega wedge…let’s see how it pans out….

The “mega wedge” pattern, discernible on the weekly ETH/BTC chart, showcases a contraction of price movement between two converging trend lines over an extended time frame. The upper trend line, acting as a dynamic resistance, has repeatedly pushed back ascending price attempts. Conversely, the lower trend line has provided a sturdy support base.

Within the boundaries of this one and a half year wedge, a more immediate descending channel has taken shape. This channel, characterized by a downward trajectory with price action making lower highs and lower lows, indicates a bearish sentiment within the overarching consolidation phase of the mega wedge.

However, Ethereum’s current positioning, slightly above the upper boundary of this descending channel, implies that a breakout could be on the cards (if confirmed). As of press time, Ethereum was trading at an equivalent value of over $3,059, which translates to roughly 0.06037 BTC.

The intersection of these two patterns, particularly if the breakout from the descending channel is confirmed, could be a harbinger of increased volatility and a potential trend reversal for ETH against BTC. A potential retest of the channel could catalyze a rally towards the mega wedge’s upper trend line, challenging the longer-term resistance. A successful breakout from the mega wedge could then ensue, signaling a massive bullish phase for Ethereum against Bitcoin.

More Bullish Voices On ETH

Remarkably, Raoul Pal is not the only seasoned analyst observing this major trend. Christopher Inks, founder of Texas West Capital stated via X:

The monthly ETH/ BTC chart looks crazy bullish off the lows. Bullish SFP, volume expansion at the lows, rally into descending resistance. An impulsive break out above that descending resistance will have me looking for price to target the top of the range and, likely, new ATHs.

Renowned analyst Will Clemente has also weighed in on the unfolding situation with his expert commentary, echoing the significance of the patterns observed by Raoul Pal. Clemente accentuates the breaking of a multi-year downtrend on the weekly chart, a technical milestone that carries substantial weight for market sentiment.

Clemente’s analysis further deepens the plot by highlighting several key factors currently at play in the Ethereum ecosystem. First, Ethereum’s price action has revisited and swept the lows of May 2022, a move often associated with shaking out weak hands before a potential trend reversal.

Second, the recent talk of “Ethereum obituaries” on social media timelines suggests a sentiment extreme, often seen at major turning points. Moreover, there is currently a new narrative for ETH shaping, the emergence of “restaking”.

Probably the strongest catalyst for the ETH price in the coming months could be the potential approval of an spot Ethereum ETF in the United States. Similar to the Bitcoin ETF euphoria, Clemente speculates that the approval has not yet been priced in.

Lastly, Uniswap’s governance proposal to switch on fees could redirect significant value to token holders, potentially adding further bullish momentum to ETH’s valuation. Clemente caps his commentary with a forecast that resonates with the sentiments of many observers: “ETH & ETH shitcoin rotation is probably upon us.”

At press time, ETH traded at $3,059.

Featured image created with DALL·E, chart from TradingView.com

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