- Ethereum is exhibiting a bullish signal amid years of massive “coiling.”
- Investors are rotating capital in the Ethereum ecosystem.
- A crucial breakout that would trigger a bull run is critically close for Ethereum.
A famous cryptocurrency analyst has spotted a significant development brewing in the altcoins market, one he views as decidedly bullish. Using the Ethereum price behavior since the last bull run, the analyst observed a pattern called “coiling.”
This observation, reportedly shared by the analyst online, suggests that Ethereum (ETH) has gone through years of accumulation, redistribution, and investor capital rotation following the previous major bull cycle. Using Ethereum’s monthly chart, he laid out how investors moved their capital around, with the market sentiment undergoing a similar process while the broader market largely traded sideways.
Related: Ethereum ETH Traders See More Reasons To Be Bullish On Its Price Right Now
Ethereum’s Unique Consolidation Points to Major Upside, Analyst Says
What makes Ethereum’s current trend stand out, according to the analyst, is that it’s unique and breaks from the mold seen in earlier cycles. Unlike the parabolic surge that follows the bear market, the analyst revealed that the flagship altcoin stayed in consolidation longer than most users expected.
However, he remained unmoved by Ethereum’s sideways trend but considers it a momentum buildup for a massive rally that is to come.
After highlighting Ethereum’s current price structure and a batch of technical indicators aligning to influence the price, the analyst cited a crucial level where a breakout would mean a lot for the altcoins market.
According to the analyst, returning to the area within a triangle formation on the weekly chart would confirm Ethereum’s most crucial breakout for the coming bull run.
Bitcoin’s New ATH Adds Fuel to Altcoin Season Hopes
Ethereum traded for $2,610 at the time of writing. The altcoin continued upward after last week’s pullback, which saw ETH decline by 15% from a local high. Ethereum’s latest recovery aligns with Bitcoin’s latest push that saw the pioneer cryptocurrency achieve a new ATH within the last 24 hours.
According to data from TradingView, Bitcoin surged to $111,888 on Thursday morning before retracing to trade for $110,589 at the time of writing.
Related: Ethereum ($ETH) Price Prediction for May 22: Will Bulls Sustain the Breakout Above $2,550?
The analyst believes Bitcoin’s fresh ATH and Ethereum’s coiled momentum are combining to create a “perfect storm.” He sees this as an early, potent signal for the widely anticipated altcoin season. Other top altcoins like XRP and ADA are reportedly mirroring a similar trend to Ethereum, as the broader crypto market looks ready to deliver on long-held investor expectations.
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