Bitcoin’s struggle with $39,000 helped the consolidation needed for the altcoin market to reach critical resistances. An experienced crypto analyst thinks that Ethereum can start a big break in this issue in March.
Leading altcoin will test a multi-month trendline as support
Veteran crypto analyst Justin Bennett believes that the dominant smart contract platform Ethereum (ETH) is poised for a boom this month. In his current analysis, Bennett says that Ethereum is approaching the cross-resistance that has kept the market bearish for the past four months:
We have a trend line from the peak of November. Ethereum has been trading lower (LL) levels since then. Since the end of last year, it has not been able to reach a higher level (HH).
What does historical data say about this trend?
Despite trading around Ethereum cross-resistance, Bennett notes that the second-largest cryptocurrency by market cap is supported by a bullish streak going into 2020:
At first glance, this lower level seems to extend from the January low. But if you go back in time, you will realize that this level actually extends all the way to 2020… You can see that there was once resistance in August 2020 and then right here before November 2020 before it broke. This level served as resistance throughout 2020, the last year of Ethereum’s bear market. If you fast forward for now, you can see how this level has provided support in the last few months, i.e. 2022.
According to Bennett, Ethereum is now trading within a symmetrical triangle and is approaching the top of the pattern. According to the crypto analyst, the smart contract platform will come out of the mold this month. However, he emphasizes that any breakout could happen as Ethereum itself has yet to offer signs of a strong upside trend. On bearish fluctuations, the analyst identifies a critical support zone:
Currently, this is really a waiting game as the market is still in a state of consolidation. Alternatively, look for a daily close below $2,500.
What levels does the formation indicate?
Bennett, whose analysis we share as Somanews, thinks that if the bulls break the cross resistance, they should take the critical resistance of ETH at $ 3,600. On the other hand, breaking long-term support will almost certainly drag Ethereum to $1,700:
Overall, we can say that Ethereum is on the verge of a 30% rise or fall. The key is to wait for that confirmation.