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The largest altcoin by market value, Ethereum (ETH), faced a significant 4.6% drop last week and a modest 0.2% decline in the last 24 hours, falling to $3,382. Simultaneously, Bitcoin (BTC) also fell below the $61,000 threshold, approaching the critical support level of $60,000. This movement has raised concerns among market participants about potential further declines. Nevertheless, the breakout scenario on the table for ETH keeps altcoin investors hopeful for a bull run.
20% Breakout Scenario for Ethereum
Interestingly, Ethereum’s price dynamics indicate a 20% breakout possibility before the end of June. This potential upward breakout is shown by a falling wedge formation within a giant ascending triangle, a bullish market structure. Currently, ETH‘s price is below the 50-day simple moving average (SMA) but above the 200-day simple moving average (SMA), highlighting the tug-of-war between bullish and bearish forces.
If Ethereum breaks above the resistance trendline of the falling wedge formation, the price could rise above $4,000, marking a 20% increase. In a negative scenario, the strong support level around $3,000 could prevent further declines. Despite positive fundamentals like the expectation of a spot Ethereum ETF approval, Ethereum’s price is partially negatively affected by Bitcoin’s instability.
Despite Ethereum’s underwhelming performance in terms of price, its fundamentals remain strong. The expectation of a spot Ethereum ETF approval by July keeps investors optimistic. Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), indicated a smooth approval process and announced that ETFs would soon be open for trading.
Experts and analysts believe that the opening of ETFs for trading could trigger a significant bull run for ETH and altcoins.
Bitcoin’s Concerning Performance
On the other hand, Bitcoin‘s recent performance has been shaky, recording a 1.59% drop yesterday to close at $60,807. Although there was a slight rise today, the price dangerously hovers between $60,198 and $62,252.
A close below this range could lead to a significant drop to the support level at $50,000. However, if the largest cryptocurrency manages to recover from this level, a rapid rise to $70,000 could be expected.
