Ethereum price is showing signs of a trend reversal that could push it toward the $3,450 level

This shift is important as it mirrors patterns seen in previous market cycles. The analyst drew parallels to similar indicator readings from August-September

Crypto Point of View host Dan Gambardello highlighted that bulls have the upper hand on Ethereum.

Major whale activity is showing massive ETH accumulation at current levels.

If Ethereum’s price is able to test and break this pattern, it would be evidence of what Gambardello refers to as a “busted pattern.”

Crypto analyst Dan Gambardello highlighted that Ethereum price is showing signs of a trend reversal that could push it toward the $3,450 level.

In his recent market analysis, Gambardello pointed out that bulls have the upper hand on Ethereum, and momentum oscillators are starting to flip bullish for the second-largest cryptocurrency.

Major whale activity, visualized through on-chain inflow charts, is showing massive ETH accumulation at current levels.

Bulls Gain Upper Hand As Ethereum Price Bottoms Out

Ethereum appears to be at a key turning point in its market cycle, with multiple indicators suggesting a bottoming process is underway.

Dan Gambardello highlighted a proprietary ‘bull bear arena’ indicator that shows a clear shift in market control. “Bulls have the upper hand right now. This is a big deal for Ethereum,” he emphasized.

Gambardello also pointed to a collection of momentum oscillators that are beginning to flip positive for ETH. This shift is particularly interesting as it mirrors patterns seen in previous cycles.

He noted that in August-September of the previous cycle, similar indicator readings preceded Ethereum’s substantial price breakout in November. While cautioning that this is a shorter-term signal rather than a macro indicator, Gambardello mentioned that these momentum shifts usually precede broader market movements.

Further reinforcing this bullish outlook is whale activity data, with charts showing substantial ETH accumulation occurring at current levels.

Gambardello compared these inflows to similar patterns that marked the beginning of previous market bottoms.

Multi-Year Triangle Pattern Points To Critical Level

Ethereum’s price action is approaching a technical pattern that could decide its mid-term trajectory.

Gambardello specifically highlighted a multi-year symmetrical triangle that has contained ETH’s price movement. “I want to see this become a busted pattern, this massive multi-year symmetrical triangle, a busted pattern we pull back to the apex and boom bull market for all coins. That’s what I want to see,” he stated.

The analyst is closely monitoring the $2,700-$2,800 range as a key resistance zone for Ethereum. This price level corresponds with the apex of the triangle pattern. It is a critical technical hurdle that ETH must overcome to confirm the bullish scenario.

Global liquidity trends may be in favor of this potential breakout. Gambardello cited M2 global liquidity levels with a 108-day lag that appears to indicate positive conditions for price appreciation. This macro liquidity index has tended to correlate with major changes in crypto market trends.

If Ethereum’s price is able to test and break this pattern, it would be evidence of what Gambardello refers to as a ‘busted pattern’ – in which the price returns to test a broken pattern before continuing in the direction in which it broke out. This technical progression would be extremely bullish for ETH and perhaps the whole altcoin market.

Altcoin Market Will Follow ETH’s Footsteps

Ethereum’s position in the market currently affects its price and can also reflect the trends in the general altcoin market.

Gambardello’s view is that price action in ETH can make the entire altcoin market be at a low point, as has been the case in previous market cycles.

The analyst studied altcoin market charts for months and observed similarities between the current market structure and previous major lows. The market is presently displaying levels of fear similar to major historical lows, such as the tariff fears of 2018 and the COVID-19 panic of 2020.

“How can you not be optimistic about crypto these days? I get it if you’re not, but looking at this information, I feel extremely optimistic,” Gambardello said while looking at the monthly altcoin charts.

On the weekly chart, the analyst pointed out that the momentum indicators of altcoins have fallen to a low of about 37 on the RSI, the same as the reading at the COVID low. This technical equivalence is an indication of a bottoming situation.

The immediate hurdle for the altcoin market appears to be the 50-week moving average, with the 20-week moving average around the $1.2 trillion market cap level representing another key technical level. This would require approximately a 14-15% move from current levels.