Ethereum leads Bitcoin to a bullish breakout

Bitcoin looks like it wants to catch up with Ethereum after the number two cryptocurrency’s bullish price action in the last three days. While ETH has surpassed BTC, it appears that the top crypto is on the verge of an outbreak.

Ethereum takes the lead

Ethereum is leading the revival in the cryptocurrency market after cutting through a crucial support area.

The world’s second largest cryptocurrency by market value jumped to the $ 1350 level over the weekend and has since risen to almost $ 1500. Improving the sentiment surrounding Ethereum’s upcoming “Merge” to Proof-of-Stake is one of the likely factors behind ETH’s recent rise. Last week, Ethereum Foundation member Tim Beiko proposed a tentative launch date of September 19, 2022 for the blockchain’s crucial Proof-of-Stake update in the latest Consensus Layer Call, hours before ETH began gathering.

As speculation increased, ETH hit a four-hour candlestick near the $ 1300 resistance level on July 16 and has since risen more than 16%. The formation of a rising triangle on its four-hour chart projects a target of $ 1700 in the near future. Still, ETH must first cut through the $ 1500 supply wall.

Bitcoin seems to be following Ethereum’s path as the top cryptocurrency rose by more than 8% on Monday. It is now testing the X-axis of a rising triangle that evolved on its four-hour chart. A decisive close over this crucial resistance area could trigger a 22% rise to $ 27,500. This bullish outlook comes from adding the height of the triangle’s Y axis to the point of eruption.

While the odds seem to favor the bulls, a breach of vital support levels may signal a nullification of the bullish thesis. ETH must maintain the $ 1400 level in support of avoiding a decline to $ 1300. Similarly, if BTC gets a discount of $ 22,600, it can get a correction to $ 21,400.

Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.