Technician’s Take: ETH Jumps But Awaits Breakout

• Upside volatility surge in ethereum, which is challenging the first breakout level of US$2,845.
• Ethereum is now well-poised to start outperforming.

As markets were released out of their recent bearish stasis, Ethereum has powered out of its low volatility torpor and is challenging the first breakout level of US$2,845. It is quite feasible that there is a brief price reaction lower here, but the preferred view is for a successful breakout and upside continuation. 

Separately, we have mentioned the spread between Ethereum and Bitcoin in previous notes and Ethereum is now well poised to start outperforming. There remains macro headline risk and the question is how much is already priced in. For now, however, we look to be moving from a neutral to a more bullish stance.