Ethereum News Today: Ethereum Approaching $4,100 Threshold Could Spark Altcoin Rally

Ethereum is currently positioned at a critical juncture that could determine the next phase of the broader cryptocurrency market. According to analyst Dan Gambardello, a breakout above the $4,100 level could spark a renewed bull cycle and potentially trigger widespread altcoin activity. Gambardello closely monitors Ethereum’s price behavior, using historical patterns and technical indicators to forecast market dynamics. He notes that the current setup bears a strong resemblance to the conditions seen in August 2020, a period that preceded a major bull market for crypto assets [1].

Recent data shows Ethereum has been gaining traction across most timeframes. Over the past 24 hours and 14 days, the token recorded increases of 5.8% and 5.7%, respectively. Monthly gains reached 48.7%, and annual growth stands at 53.3%. However, the 7-day timeframe posted a slight decline of 0.2% [1]. Despite this minor setback, Ethereum remains within a larger uptrend. The 7-day price range currently sits between $3,380.72 and $3,832.67, while the token is still 21.5% below its all-time high of $4,878.26 from November 2021 [1].

Gambardello identifies $4,100 as a pivotal resistance level that must be decisively breached to confirm a bullish scenario. Weak attempts to surpass this level, he argues, would not satisfy the necessary criteria for a meaningful breakout. A strong move into the mid-$4,000s would serve as validation of his altcoin mania prediction [1]. The analyst emphasizes that such a move would not only signal strength in Ethereum but also create a conducive environment for altcoins to thrive.

Technical indicators further support Gambardello’s thesis. The 20-week moving average has crossed above the 200-week moving average—a macro-level bullish signal that historically preceded major price movements. Ethereum’s current risk score stands at 49, matching the levels recorded in August and September 2020, a period that led into a significant bull market [1]. Additionally, the 20-day and 50-day moving averages have recently crossed above the 200-day line, echoing a setup that occurred before a major ETH price rally in 2020 [1].

Gambardello also draws attention to Ethereum’s consolidation phase, where it could remain range-bound as institutional investors accumulate positions. This sideways movement, he notes, is often accompanied by ETF inflows, particularly during pullbacks. The Bitcoin dominance metric, a key indicator of altcoin performance, is currently near the 50-week moving average, suggesting the market is poised for a shift [1].

In a more conservative scenario, Gambardello anticipates that Ethereum may not break out above $4,100 and could instead remain in a consolidation phase, with potential downside if bullish momentum fails to hold. He acknowledges that price manipulation by exchanges and market makers adds an element of unpredictability, leading to choppy price action that aligns with key resistance levels [1]. Ethereum is currently testing the lower trend line of its long-term triangle pattern, a technical formation that historically has seen false breakouts before major price shifts [1].

In conclusion, Ethereum’s price action is a focal point for the broader cryptocurrency market. A strong breakout above $4,100 could validate a new bull cycle and potentially set off widespread altcoin activity, as observed in the 2020 cycle. However, the market must overcome technical and psychological barriers to confirm this scenario.

Source: [1] This Ethereum Move Could Set Off Altcoin Mania, Says Analyst (https://coinmarketcap.com/community/articles/6895e7e39a14c16682dc539b/)