In the backdrop of altcoins recovering, the top altcoin, Ethereum, is gearing up to go big. Technically and fundamentally, Ethereum is building up for a massive breakout.
The market is swamped in extreme fear as Bitcoin, the flagship cryptocurrency, tries to recover from the previous week’s losses. During the course of the last 7 days, Bitcoin crashed from $103K and reached the lowest price, $88.4K, yesterday. However, BTC is now gaining momentum, and it has reached $92K.
The altcoins are showing the first signs of healing as the Other/Bitcoin pair (altcoins vs BTC) chart starts to consolidate after falling for quite some time. The setup looks so similar to what happened back in 2019, and Crypto enthusiast Michael Van de Poppe spotted this new trend. Not only does the chart look so much like the 2019 setup, which went into a full-blown bull rally, but there is also a bullish divergence on the MACD indicator.
The MACD indicator, which was below the MACD SMA, is currently intersecting. When the MACD moves above the MACD-SMA, the histogram becomes green. So this means that the altcoins are about to burst into a rally. So, to confirm whether this is going to happen, let’s look at one altcoin, Ethereum.
Ethereum’s technicals show a massive breakout
On the monthly chart, Ethereum is trading inside a bullish pennant, which, when it breaks out, will go blast into a massive spike. However, at present, ETH has rebounded off the upper trendline as it stays on trend, completing the pattern.
Once the pattern is complete, the ETH is bound to gain value by the height of the pennant at its widest part. Given that Ethereum follows the general principle of breakout, there is a high chance that it could rise above $7,500 and reach $8,000.
Fusaka upgrade, the icing on the cake
Ethereum is not just technically set up for a massive rally, but even the fundamentals are looking very strong. For instance, the Fusaka upgrade, which is currently being tested, will come in handy. With this upgrade, the Ethereum transaction capacity will be raised by increasing the block gas limit from 45 million to 150 million. This will enable the network to process more transactions, smart contracts, and other operations when a transaction is added. With the whole crypto market looking towards this big upgrade, ETH prices could spike dramatically.Â
