Ethereum (ETH) price shows signs of a trend reversal that could push it toward the $3450 level

Ethereum (ETH) price is showing signs of a trend reversal that could push it toward the $3,450 level, according to analyst Dan Gambardello.

In his recent market analysis and Ethereum (ETH) price prediction, Gambardello highlighted that «bulls have the upper hand» on Ethereum.

He pointed to momentum oscillators starting to flip bullish for the second-largest cryptocurrency.

The analyst noted major whale accumulation of Ethereum. He compared current inflow charts to patterns that previously marked the beginning of market bottoms.

Bulls Gain Upper Hand As ETH Price Bottoms Out

Ethereum appears to be at a key turning point in its market cycle. Multiple indicators suggest a bottoming process is underway.

Gambardello highlighted a proprietary «bull bear arena» indicator that shows a clear shift in market control.

«This is a big deal for Ethereum. Bulls have the upper hand right now. Point being, we’re starting to see these momentum oscillators flip positive for Ethereum.»

This shift is significant as it integrates patterns seen in prior market cycles. The analyst drew parallels to similar indicator readings from August-September of the previous cycle, which preceded Ethereum’s substantial breakout in November.

While cautioning that this is a shorter-term signal and not a macro indicator, Gambardello noted that these momentum shifts typically herald broader market movements.

Whale activity data amplifies this bullish outlook, with charts showcasing 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 pointed to 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.»

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 and 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 Ethereum’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.»

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.