ETH has broken out with increased volume, but is currently experiencing a slight pullback. The key support to watch below is the 2710 level; this level should not be breached during the pullback, as it can be considered the dividing line between bulls and bears.
If it does not break below this level, it can be viewed as a normal pullback and a bullish breakout, with altcoins following suit along with the weekend, potentially leading to a few days of upward movement. Conversely, if the price breaks above this level but then falls back below the starting point, which is below 2710, it would indicate a false breakout.
Such a false breakout at the daily level often signals a larger decline ahead! If it falls back below 2700, confirming the false breakout, we will need to turn bearish in the coming days. Bitcoin may also fall below the key level of 106000, leading to a scenario where both Bitcoin and ETH experience false breakouts, increasing the likelihood of a significant pullback.
