The largest altcoin by market cap #Ethereum (ETH) faced a significant decline of 4.6 percent last week and fell a modest 0.2 percent in the last 24 hours to $3,382. Simultaneously, Bitcoin (BTC) fell below the $61,000 threshold and approached the important support level of $60,000. The move raised concerns among market participants about the potential for further declines. Still, the breakout scenario on the table for ETH keeps altcoin investors sharp for a bull run.
20 Percent Break Scenario for Ethereum
Interestingly, Ethereum's price dynamics point to a 20 percent probability of a breakout before the end of June. This potential is illustrated by the falling wedge formation formed within a giant ascending triangle, a bullish market structure with a higher probability of an upward breakout. Currently, the price of ETH is trending below the 50-day simple moving average (SMA) but above the 200-day simple moving average (SMA), directly highlighting the tug of war between bullish and bearish forces.
If Ethereum breaks above the resistance trend line of the falling wedge formation, the price could rise by 20 percent, pushing it above $4,000. In a negative scenario, the strong support level around $3,000 could prevent further decline. Despite Ethereum's positive fundamentals, such as the prospect of Spot Ethereum ETF approval, its price is negatively impacted in part by Bitcoin's instability.
Despite Ethereum's below-expected performance in terms of price, its fundamentals remain strong. Especially the fact that a spot Ethereum ETF is expected to be approved by July makes investors optimistic. U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler pointed to a smooth approval process and announced that ETFs will be open for trading soon.
Experts and analysts evaluate that the opening of ETFs for trading could be the trigger for a major bull run for ETH and altcoins.
Bitcoin's Thought-Provoking Performance
On the other hand, Bitcoin's recent performance has been shocking and it recorded a 1.59 percent decline yesterday, closing at $60,807. Even though there was a slight increase today, the price remains dangerously close to the danger zone between $60,198 and $62,252.
A closing price below this range could lead to a significant decline to the support level at $50,000. However, if the largest cryptocurrency manages to recover from this level, a rapid rise to 70 thousand dollars can be expected.
