On Tuesday, Ethereum (also known as Ether), a popular cryptocurrency, nearly reached $3,400 on Coinbase, a platform where people trade digital currencies. This was its highest price in almost four weeks, since November 13.
Financial experts are calling this price surge a “breakout.” A breakout happens when a price moves above a certain level that it couldn’t get past before, suggesting it might go even higher. Experts believe the price will continue to rise, especially since Ethereum has stayed above $3,300, even as Bitcoin’s price has gone down a little.
Crypto expert ‘Negentropic’ commented that “Ethereum is quietly getting ready for something big.” He noted that Ethereum’s market share is improving, showing a strong change in its trend, and its price is gaining strength. He added that the last two times this specific pattern appeared, Ethereum’s price didn’t just slowly increase; it shot up quickly. He believes the period when Ethereum and other cryptocurrencies (called “altcoins”) were expected to fall in price is now over. Altcoins are all cryptocurrencies other than Bitcoin.
Another expert, Merlijn The Trader, said that “the most positive pattern for price increases in crypto is showing up for Ethereum.” He was talking about a special chart pattern called an “inverse head-and-shoulders.” An inverse head-and-shoulders is a chart pattern used by traders to predict a possible reversal from a downward trend to an upward trend. It looks like an upside-down head with two smaller “shoulders” on either side. This pattern is appearing on charts that show price changes over weeks, suggesting a big, long-term shift.
Fellow expert ‘Rekt Capital’ also noted that Ethereum has clearly shown strong price signs in an area where many people want to buy, which helped cause this latest price increase. He also said that if Ethereum’s “futures” (agreements to buy or sell at a future date) finish the week above a certain point related to something called a “CME gap,” and if that point then acts as a strong “support,” it would confirm that the upward trend will continue. Futures contracts are agreements to buy or sell a specific amount of something (like a cryptocurrency) at a specific price on a specific future date. Support is a price level where a downtrend is expected to pause due to a concentration of demand or buying interest.
A CME gap happens when the price for cryptocurrency futures on the Chicago Mercantile Exchange (CME) closes at one price on Friday and then reopens at a much different price on Monday. This creates an empty space, or “gap,” on the price chart.
Expert ‘Mercury’ added that Ethereum broke through a “resistance” level (a point where prices struggled to go higher) and is now back on a strong upward trend. Resistance is a price level where an uptrend is expected to pause due to a concentration of supply or selling interest. He said it’s trying to keep that new level as “support,” meaning buyers will likely prevent it from falling below it.
Other News in the Crypto Market
Bitcoin’s quick climb to $94,500 didn’t last long. Its price soon dropped back to $92,000 as sellers took control, but it has stayed above $92,000 since then.
Other cryptocurrencies, known as “altcoins,” had varied results. Solana, Dogecoin, and Cardano saw good price increases, while XRP, BNB, and Tron’s prices remained low.
The total value of all cryptocurrencies combined (called “total market cap”) increased by 3.2% to $3.25 trillion. Market capitalization (market cap) is the total value of all the coins of a cryptocurrency that are currently in circulation. It’s calculated by multiplying the current price of one coin by the total number of coins available. So far, Ethereum has been the main driver of this overall market increase.