The altcoin market is showing strong signs of a potential breakout, and according to new analysis, the entire trend is being driven by Ethereum’s position on its long-term charts.
The altcoin market is showing strong signs of a potential breakout, and according to new analysis, the entire trend is being driven by Ethereum’s position on its long-term charts.
As ETH closes in on a major “make-or-break” resistance level, traders are watching closely for what could be the start of a new altcoin season.
According to an analysis by Dan Gambardello, Ethereum is currently testing a long-term resistance trendline that dates all the way back to the previous bull market peak. He notes that ETH is in a classic “busted pattern,” having recovered back above a previous breakdown point to now challenge the final trendline.
If Ethereum can break above this level, it could confirm a major reversal and kick off a surge toward the $4,100 mark.
However, caution is warranted. Ethereum’s short-term risk model has declined from 57 to 45, signaling consolidation rather than breakout. Historically, this has led to higher prices 64% of the time after three months.
Gambardello also suggests a massive inverse head and shoulders pattern may be forming. If the current support levels hold, this long-term pattern could have a speculative price target as high as $10,000. However, he cautions that a short-term dip to retest support near the 50-day moving average, about 10–16% below the current price, remains a real possibility.
This bullish technical setup for Ethereum comes as the broader market shows signs of strength. As of press time, the global crypto market cap stands at $3.76 trillion, with coins like Solana (SOL) jumping 4.64% and Ethereum (ETH) itself up 3.03% to $3,669.
According to CoinMarketCap data as of press time, the global crypto market cap stands at $3.76 trillion, with a 24-hour trading volume of $144.48 billion.
The market chart indicates an upward trend over the past several months, particularly since mid-year, an environment that could provide favorable tailwinds for Ethereum’s continued rise.
Among major cryptocurrencies, Bitcoin (BTC) is priced at $114,697.54, showing a 0.18% increase. Ethereum (ETH) is trading at $3,669.00, up by 3.03%. BNB stands at $764.05, rising 0.9%. Solana (SOL) has experienced a 4.64% jump, currently at $170.43. XRP is valued at $3.0599, having increased by 2.3%.
Despite these gains, overall market sentiment remains balanced. The Fear and Greed Index is at a neutral 55, suggesting investors are neither overly fearful nor euphoric.
At the same time, the Altcoin Season Index is at 44, which indicates that a full-blown altseason has not yet started. This “cool” sentiment, combined with the powerful long-term chart patterns, is exactly what many analysts look for as a sign that a major move could be quietly building up.
