Renowned Analyst: "Ethereum, Deja Vu Before 2023 Surge"

▲ Ethereum (ETH)

It has been argued that Ethereum (ETH) is ending its boring period of price stagnation and preparing for a new bullish cycle by replicating chart patterns seen just before past major surges.

Dan Gambardello, host of the cryptocurrency YouTube channel Crypto Capital Venture, analyzed in a video uploaded on April 28 (local time) that "the current chart patterns of Bitcoin (BTC) and Ethereum are strikingly similar to those just before the major surge in October 2023." Gambardello diagnosed, "Bitcoin has entered a compression zone within an ascending channel where resistance and support lines intersect," adding, "there are signs of an imminent powerful directional breakout." He specifically explained that if Bitcoin firmly holds the $68,000 support level, there's a high probability it will break through the resistance and surge vertically, as seen in past cases.

In the Ethereum market, aggressive accumulation by large investors has been observed, raising expectations for a price rebound. Tom Lee, founder of Fundstrat, recently purchased an additional 101,901 ETH in the past week alone, believing Ethereum to be severely undervalued, and now holds over 5 million Ethereum. Lee is confident that Ethereum is on the verge of breaking out of a "mini crypto winter" and is strengthening his long-term holding strategy, including staking 214 million dollars worth of Ethereum recently.

From a technical analysis perspective, Ethereum is forming an ascending triangle pattern and undergoing a strong bottoming process. Currently, Ethereum is testing support at the 50-day exponential moving average of $2,200, and even if this level breaks, strong buying interest is expected to enter near the Fibonacci 78.6% retracement level of $2,050. Conversely, if it breaks the upper resistance of $3,200, it would signal the official end of the stagnation and the beginning of a new bullish cycle.

Gambardello advised that the current crypto market has entered an extremely oversold zone, making it an opportune time to accumulate assets through phased buying. This is because Bitcoin's and Ethereum's risk indices are recording 28 and 27 respectively, historically indicating they are near the bottom. Analysts emphasized that instead of being swayed by short-term price fluctuations, investors should revisit the October 2023 surge and closely observe the occurrence of golden crosses in major moving averages and changes in trading volume.

The future trend of the virtual asset market for the next few months is expected to be determined this week by whether Bitcoin breaks through the upper resistance of its ascending channel or deviates from the $68,000 support level. For Ethereum, attention is focused on whether massive accumulation by whales can create a supply shortage in the market and drive up prices. Investors appear to be building strategic positions while awaiting confirming signals from technical indicators.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*