Avalanche (AVAX) is currently trading at $26.42, following an impressive 30% surge from the $20 mark to $27. 

After a steep correction from its peak in March, Avalanche has been relatively quiet, underperforming compared to stronger altcoins. However, Avalanche is gaining momentum, with analysts and investors sharing crucial data pointing to a potential rally in the coming months. 

This renewed optimism suggests that Avalanche might be on the verge of a significant breakout, making it one to watch closely as the market evolves.

Avalanche Rally On The Horizon

Avalanche is generating significant buzz among investors and analysts who are anticipating a potential rally from its current level to new highs. 

Prominent crypto analyst and investor Allincrypto recently shared a detailed chart on X, providing a technical projection of AVAX’s next significant move. The chart highlights AVAX’s price action since the last bull run, underscoring the importance of the $20 price level. This level was a significant resistance point several months before the last rally. Still, recent price action has confirmed it as solid support after a successful retest over the past few weeks.

The technical outlook suggests that the Layer-1 (L1) could be on the brink of a significant upward move, similar to the rally it experienced between October 2023 and March this year. This period saw AVAX achieve remarkable gains of over 600%, and many in the crypto community believe that the current market conditions could lead to a similar (or a bigger) outcome.

A combination of solid technical indicators and growing investor confidence fuels the anticipation. With Avalanche holding firmly above its previous resistance and turning it into support, the path seems clear for a new rally that could propel Avalanche to new highs. The next few weeks will be crucial in determining whether AVAX can sustain this momentum and fulfill the bullish expectations set by the crypto community.

AVAX Tags $27 And Breaks Above Local High

Yesterday, AVAX rose to $27 following excitement sparked by comments from Federal Reserve Chairman Jerome Powell, who suggested a potential policy shift, and investors now expect a 25bps interest rate cut by September 18. This announcement fueled optimism across the crypto market, driving AVAX to this price level. 

However, after reaching $27, AVAX began to consolidate below this price, currently trading at $26.35. This consolidation comes after it successfully broke above the previous high at $22.8, signaling strength and setting its sights on the next significant resistance at $33. 

For AVAX bulls, maintaining momentum above $27 is crucial for sustaining the rally. However, if the price fails to hold and consolidate above this level, the anticipated rally may be delayed further, as it has yet to recover above the daily 200 Moving Average—a critical indicator for confirming a bullish trend. Holding above this moving average would signal that Avalanche is on a solid path toward further gains, but until then, the market remains cautious.

Ethereum’s on the edge. The whole market’s watching to see if it can close the week above $2,800. That’s the magic number right now. If it can pull it off, we might see a run-up to levels we haven’t hit since spot Ether ETFs started trading back in July. 

But if it can’t hold that line, things could get messy real quick. The stakes are high—like, really high. A slip down to $2,600, for example, could wipe out $1.07 billion in long positions.

Here’s the thing: a lot of traders are feeling more upbeat about the upside. Data from Coinglass shows that only about $400 million would be at risk if Ethereum jumps instead of dips. 

But Jamie Coutts over at Real Vision is throwing up a caution flag. He’s saying, sure, a rally could be in the cards, but it’s not happening unless Ethereum’s network activity kicks up a notch. 

“Fees are at four-year lows,” Coutts posted on Twitter. He also mentioned that while layer-2 adoption is “strong,” it’s just not enough yet. The network needs to wake up, plain and simple.

So, what’s the roadmap from here? Analysts are eyeing some specific levels. To keep the bullish vibes going, Ethereum needs to hold above $2,888. That’s seen as a pretty crucial reversal level. If we stay above that, we’re talking about a solid buying opportunity. 

If Ethereum can’t hold this line, though, we’re looking at a drop to the next key support, which is sitting at $2,253. That number lines up with the 38.2% Fibonacci retracement level. 

Drop below that, and we might be in for a full-on bearish trend.

Looking at the charts, the signs are mixed. There’s a long-term rising trendline that’s been holding up pretty well. But there’s also a short-term falling trendline that’s set to cross the long-term one later this month.

And let’s not forget about on-chain metrics. Ethereum’s Network Value to Transactions (NVT) ratio is looking interesting. It’s dropped big time to -53.05. That sounds bad, but it might actually be a good thing. 

A lower NVT ratio usually means the market cap isn’t growing as fast as the transaction volume, which some see as a sign of undervaluation. Could this mean we’re near a bottom? 

Maybe. But only time will tell.