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$ETH has just broken out after consolidating over the past three days. Next leg higher can drive ethereum ecosystem altcoins skywards.
Next leg up for $ETH?
Having cleared the $2,000 resistance last Thursday with an 11% move, $ETH has been consolidating within a flag for the past three days. At 2 pm GMT $ETH popped out of the top of the narrowing flag pennant just before it ended and is currently sitting at around $2,100 at time of going to press.
Source: Trading View
A confirmation of the breakout can take the $ETH price back down to touch the top of the triangle at $2,060, but this still remains to be seen. This bullish move from $ETH is exactly what was needed for the crypto sector, as $BTC is tracking sideways without any momentum up or down as yet.
Of course, there is still the scenario for $ETH that this move becomes a fake out and the price is rejected back through the triangle and downwards. However, as it stands the move is looking very positive.
Ethereum ecosystem shows signs of waking up
It’s still too early to tell if this $ETH break out will capture momentum now to the upside, but initially, ethereum staking coins have started to run with $ETH.
Lido ($LDO) is one of the front runners with a 6% move so far. Here too, the price has come back to test what may now be support at $2.40 and a higher high must still be made.
Rocket Pool ($RPL) spiked as much as 16% before coming back to test support at just under $32, and Frax Shares ($FXS) appears to have successfully tested support at $6.90.
It will be very interesting to see whether ethereum can sustain this latest rally – the whole of the crypto market can benefit greatly from it.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.