- ETH/BTC breakout above 0.025 BTC could spark a sharp rally toward $2,800 for ETH.
- Rising RSI and MACD show strength, but hint at possible short-term cool-off.
- Liquidation spikes suggest volatility ahead, amplifying ETH price swings.
Ethereum (ETH) is gearing up for a notable surge. Its technical indicators are pointing toward a possible breakout. Market analyst Ash Crypto has identified a bullish formation on the ETH/BTC trading pair, with a hope in Ethereum’s short-term potential.
As of press time, ETH is trading at $2,601.46, marking a 2.54% daily gain and a 12.5% rise over the past week. These recent gains have ignited optimism among traders, especially as Ethereum approaches a pivotal resistance level that could push prices as high as $2,800.
ETH/BTC Breakout Fuels Momentum
According to Ash Crypto, the ETH/BTC chart reveals a symmetrical triangle pattern. Recently, ETH tested the upper boundary near 0.02475 BTC and even pierced it briefly.
This movement signals growing bullish strength. The MACD indicator supports this, with the MACD line well above the signal line. Additionally, the RSI is breaking out of a downward trend, adding further weight to the upward bias.
If Ethereum closes above the 0.025 BTC mark, it could confirm a breakout. Sustained volume above this level would likely trigger a strong bullish move. If Bitcoin remains stable or continues its climb, ETH could rally to $2,800. Though, this scenario depends heavily on the overall market sentiment, currently it leans positive.
Market Structure and Volatility Signals
Besides price momentum, liquidation patterns are also shaping ETH’s outlook. Historical data shows that liquidation spikes in both long and short often precede sharp price reversals, highlighting the market’s sensitivity to leveraged positions.
For instance, major long liquidations on May 12–13 occurred after a sudden price drop, underscoring the vulnerability of overleveraged traders. Similarly, short liquidations surged during early-year rallies as prices climbed rapidly, forcing bearish positions to unwind.
RSI and MACD Suggest Possible Cool-Off
Despite the positive signs, some caution is necessary. The RSI currently hovers near 73.6, pushing into overbought territory. Historically, such levels have led to short-term corrections or sideways action. Moreover, while the MACD histogram continues to grow, it may signal overextension soon.
