Cardano Poised for Explosive Breakout as Ethereum’s Record Rally Heats Up

• Ethereum rallies to new highs as Cardano eyes $3 breakout.
• Analysts say Cardano mirrors 2021 setup, signaling massive gains.
• Bullish chart patterns position Cardano for rapid move upward.

Ethereum’s surge into new record territory is fueling excitement across the crypto market, and attention is now turning toward Cardano. According to CryptoCapitalVenture Cardano’s current positioning mirrors its setup during the last bull cycle, raising expectations of a breakout that could drive the token toward $3.

In the Ethereum rally of 2021, the asset suffered severe pullbacks before and following new all-time highs. It fell more than 30 percent before the breakout and 27 percent immediately after. This time, Ethereum dropped 15 percent earlier this month only to regain its new heights, which analysts explain as normal crypto volatility but not manipulation.

Among the important differences today is the risk score of Ethereum. The reading, 80, indicates overheated conditions at the 2021 breakout. The score is currently at 59, which is a healthier figure that means there is more upside. Analysts think such a healthier setup would open the door to altcoins, and Cardano is one of the most probable beneficiaries.

Also Read: XRP Advocate Slams Ex-SEC Lawyer for Hiding Ripple Defeat in New Firm Bio

Cardano’s Bullish Setup Signals Potential Rally

In 2021, Cardano lagged far behind when Ethereum broke into record levels, sitting 240 percent below its own peak. That pattern is repeating today. Ethereum has entered price discovery, while Cardano remains 249 percent below its all-time high.

Although the gap is present, Cardano’s chart is promising. Analysts say the price zone is the so-called bull market door, which is a price area that is followed by stronger rallies. Cardano is currently testing this level, and resistance is at 1.20 to 1.25 as the key barrier.

Furthermore, a bullish inverse head-and-shoulders pattern is also in play, which adds to the argument in favor of upside. The neckline at around $1 has already repelled price once, but the pattern is still intact as long as Cardano trades above $0.68. A breakout would take Cardano to $2, and the momentum may drive it even to the $3 mark.

Ethereum is rallying, and the rest of the market is following in its wake, but Cardano’s technical setup indicates that its explosive move could be next. With historical patterns aligning and bullish indicators strengthening, traders are closely watching Cardano for a breakout that could confirm a run toward $3.

Also Read: XRP Surpasses BlackRock as Market Cap Soars Past $176B Amid Crypto Frenzy

The post Cardano Poised for Explosive Breakout as Ethereum’s Record Rally Heats Up appeared first on 36Crypto.