- Ethereum tests critical resistance after four years of altcoin consolidation.
- Analyst sees a potential $10,000 target through an inverse head and shoulders pattern.
- Gambardello says the altcoin market cap could reach $7 trillion once the breakout triggers.
Crypto analyst Dan Gambardello warns that Ethereum faces a make-or-break moment that could determine the entire altcoin market’s trajectory. The cryptocurrency currently battles upper trendline resistance after months of preparation for what he describes as an inevitable explosive move.
Gambardello points to four years of compression in the altcoin markets, creating a coiled spring effect that awaits the right catalyst. Ethereum’s price action serves as the primary indicator for when this breakout will materialize, with the analyst tracking specific technical levels that could trigger widespread gains.
Technical Setup Points to Massive Upside Potential
The current configuration suggests Ethereum is testing resistance at a significantly higher trendline after breaking lower support levels earlier this year. Moving averages have started crossing above the 200-day line, corresponding to conditions during earlier bull runs that produced high returns. The initial target is about $4,200, and would likely trigger similar activity in other alternative coins.
A breakout above $4,200 would drive Ethereum into a sturdy resistance area before hitting all-time highs. This area is the final barrier before price discovery mode for Ethereum and the rest of the altcoin space.
Inverse Head and Shoulders Could Drive $10,000 Target
Should Ethereum experience another pullback, Gambardello sees potential for an inverse head and shoulders pattern to develop. This formation would create a speculative target around $10,000, providing fuel for what he considers a realistic cycle peak.
The analyst emphasizes that the altcoin market capitalization, excluding Bitcoin, could reach $7-8 trillion once the breakout occurs. This projection stems from a technical analysis of the ascending triangle pattern that has formed over multiple years of consolidation.
Current momentum indicators show overbought conditions similar to previous bull phases, suggesting room for continued upward movement despite recent gains. The convergence of moving averages and breakout patterns creates conditions that historically precede major rallies.
Gambardello maintains that time is running short for those waiting for lower entry points, as the technical setup indicates the breakout could happen quickly. The analyst expects sentiment to shift quickly once momentum builds.
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