Famous Analyst: "Ethereum, Déjà Vu Right Before the 2023 Surge"

▲ Ethereum (ETH)

A claim has been made that Ethereum (ETH) is ending its boring period of price stagnation and preparing for a new bull 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, "Precursors to a strong directional breakout are appearing soon." He 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. Fundstrat founder Tom Lee recently judged Ethereum to be severely undervalued, adding 101,901 ETH in the past week alone and currently holding over 5 million Ethereum. Lee is confident that Ethereum is on the verge of emerging from 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 strong base building. Currently, Ethereum is testing support at the 50-day exponential moving average of around $2,200, and even if that level breaks, strong buying interest is expected to come in around the Fibonacci 78.6% retracement level of $2,050. Conversely, if it breaks the upper resistance level of $3,200, it would signal the official end of the stagnation and the start of a new bull cycle.

Gambardello advised that the current virtual asset market has entered an extremely oversold zone, making it an opportune time to accumulate quantities through dollar-cost averaging. This is because Bitcoin's and Ethereum's risk indices are at 28 and 27 respectively, historically indicating proximity to bottom levels. Analysts emphasized that instead of reacting emotionally to short-term price fluctuations, investors should review the October 2023 surge and closely monitor for golden crosses of 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 above the upper resistance line of the ascending channel or falls below the $68,000 support level. For Ethereum, attention is also focused on whether the accumulation by large whales can create a market supply shortage and drive price increases. 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.*