Ethereum (ETH), the largest altcoin by market capitalization, fell sharply by 4.6% last week and slightly by 0.2% in the past 24 hours to $3,382.
Meanwhile, Bitcoin (BTC) also fell below the $61,000 threshold, approaching the critical support level of $60,000. The move raised concerns among market participants about the possibility of further declines. Nonetheless, the prospect of a breakout in ETH has altcoin investors hopeful of a bull run.
Interestingly, Ethereum’s price dynamics suggest a 20% chance of a breakout before the end of June. This potential upward breakout is represented by a descending wedge pattern within a huge ascending triangle, which is a bullish market structure. Currently, ETH’s price is below the 50-day simple moving average (SMA) but above the 200-day SMA, highlighting the tug-of-war between bullish and bearish forces.
If Ethereum breaks above the resistance trendline of the descending wedge, the price could rise to above $4,000, a gain of 20%. In the negative scenario, the strong support level around $3,000 can prevent further declines. Despite positive fundamentals such as the expectation of approval of the Ethereum spot ETF, the price of Ethereum is negatively affected to some extent by the instability of Bitcoin.
Despite the mediocre price performance of Ethereum, its fundamentals remain strong. The expectation of approval of the Ethereum spot ETF in July has made investors optimistic. Gary Gensler, chairman of the Securities and Exchange Commission (SEC), said that the approval process went smoothly and announced that the ETF will be open for trading soon.
Lao Li believes that the opening of trading of the ETF may trigger a significant bull market for ETH and altcoins.
On the other hand, Bitcoin has been volatile recently, falling 1.59% yesterday to close at $60,807. Although it rose slightly today, the price is dangerously hovering between $60,198 and $62,252.
A close below this range could lead to a sharp drop to the $50,000 support level. However, if the largest cryptocurrency can recover from this level, a rapid rise to $70,000 can be expected.
