Ethereum continues to show strength as it hovers around $2,600 in midday European trading on June 3rd, maintaining a positive trend that started in late April. Technical strategist Kevin, in a recent video analysis, highlights a significant structural shift in Ethereum’s charts that cannot be overlooked.
On the monthly ETH-USD chart, Kevin points out that Ethereum has been trading in a wide range since April 2021, concealing a potential breakout. He emphasizes a key moment in April when Ethereum touched $1,400 before rebounding with a strong demand candle, a pattern that has historically led to sustained upward movements. The May candle confirmed this with a 41% body, pushing the price above a long-term super-trend that many had dismissed as likely to break.
What makes this setup unique, according to Kevin, is the convergence of high-momentum indicators that rarely align. The monthly stochastic RSI is on the verge of a “V-shaped cross” out of oversold territory, a signal that has previously marked major bottoms. The MACD histogram is also coiling into a symmetrical triangle after four years, indicating a potential large move ahead. Additionally, on-chain money-flow data suggests that institutional investors are accumulating Ethereum while retail sentiment remains subdued.
Turning to dominance metrics, Kevin examines Ethereum’s dominance over the broader altcoin market. He notes a significant shift in Ethereum dominance, with indicators suggesting a potential breakout. This, combined with other technical signals like Market Cipher buy signals and VWAP crossing the zero line, indicates a bullish momentum building up.
The ETH/BTC ratio also shows signs of a reversal, with the pair touching key Fibonacci retracement levels and displaying bullish candles. The monthly stochastic RSI is poised to cross back up after spending almost three years in bear-market territory, signaling a potential shift in market dynamics.
Despite facing resistance in the $2,800–3,000 range, Kevin believes that Ethereum’s monthly signals point towards a sustained breakout. He emphasizes that these signals play out over longer timeframes and are indicative of a broader shift in market sentiment towards altcoins.
In conclusion, Kevin sees Ethereum’s potential breakout as a trigger for a broader altcoin rally, signaling a shift in risk capital towards smaller market-cap assets. With a supportive macro backdrop and technical indicators aligning, Ethereum’s price action suggests a bullish trend ahead.
At the time of writing, Ethereum is trading at $2,607, with the potential for further upside based on the technical analysis presented.
(Source: NewsBTC)