ETH/BTC nears a breakout as it holds critical support at 0.036 BTC, mirroring 2016 patterns before a major parabolic rally.
A break above the long-term red trendline signals bullish momentum, potentially targeting 0.105 BTC, a key historical barrier.
Ethereum’s upward channel since 2016 remains strong; current consolidation could set the stage for a sharp recovery toward 0.18 BTC.
Ethereum’s price action against Bitcoin signals a potential breakout, resembling historical reversal patterns. Despite sluggish movements, the chart reflects bullish undertones, especially as ETH/BTC holds key support near 0.036 BTC. Analyst Venturefounder, point to similarities with the 2016-2017 reversal that led to a massive rally.
A long-term falling red trendline that has been active since early 2018 is seen on the current ETH/BTC chart. This trend line acts as a resistance to Ethereum's every upward attempt. The price has also remained inside a very long-term blue-rising channel since 2016. The lower edge of the channel frequently provided dependable support and a solid base for recoveries.
https://twitter.com/venturefounder/status/1868735608958624183 Key Levels of Resistance and Support
Ethereum’s ETH/BTC pair displays multiple horizontal resistance levels, including 0.056, 0.070, 0.075, and 0.080 BTC. Notably, the 0.105 BTC level marks a major historical barrier. This zone previously halted Ethereum’s rally attempts during 2020 and 2022. However, price action in 2023 and early 2024 mirrors earlier rebounds seen in 2016 and 2019.
Ethereum’s recent decline sharply bottomed near the lower boundary of the ascending blue channel. This zone aligns with the critical support level at 0.036 BTC. Consequently, Ethereum’s bounce toward 0.038 BTC reflects a positive shift in sentiment. Should the upward momentum persist, Ethereum could revisit critical resistance zones near 0.056 BTC and beyond.
Potential Breakout Signals Strong Momentum
Moreover, a decisive break above the descending red trendline would signify a major trend reversal. Historically, such breakouts have led to sharp upward movements. The projected price trajectory suggests Ethereum could surge toward 0.105 BTC. This move aligns with past highs and signifies strong upward momentum.
Venturefounder emphasizes that Ethereum’s current position resembles the bottom reversal seen in 2016. Ethereum started a parabolic rally at that point. Ethereum might see a burst toward 0.18 BTC, which would match its all-time highs from 2017 if history repeats itself.
Furthermore, despite brief drops, Ethereum's long-term upward structure holds firm. Its bullish prognosis is supported by its capacity to recover from channel lows. Hence, Ethereum holders may find the current consolidation phase an opportunity for accumulation.
The post Ethereum Poised for Breakout: Key Support Holds as Bullish Patterns Mirror 2016 Rally appeared first on Crypto News Land.
