Crypto Market Heats Up: Ethereum, Cardano, and SUI Signal Mixed Short-Term Outlook

After months of sluggish action, the crypto market appears to be waking up. Ethereum, in particular, has shown strong momentum with a recent weekly close that triggered a macro bullish signal. However, traders are now being advised to tread cautiously.

Despite bullish setups across several altcoins, signs of a short-term pullback are emerging. Ethereum, SUI, and Cardano all show potential for breakout gains, but key resistance levels and macroeconomic factors are flashing early warnings.

Ethereum Faces Major Test at $4000

According to analyst Dan Gambardello, Ethereum’s move from $1,900 in March to its current $3,800 mark is significant. It completed a bullish breakout from a multi-month pattern, signaling strong upside potential. Targets of $10,000 and even $16,000 are being discussed for the next leg of the cycle.

However, Ethereum is currently testing a strong resistance zone between $3,800 and $4,000. This makes a near-term retracement possible, especially with an inverse head-and-shoulders pattern taking shape.

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Short-term, Ethereum needs to maintain structure around its moving averages. A pullback into the 20-day or 200-day moving average may provide stability before the next move. With a Federal Reserve meeting approaching, volatility could spike.

Hence, traders should watch for any weakness in momentum. A break above this resistance, however, could confirm the next leg of the altcoin season.

SUI Signals Early Altcoin Movement

SUI continues to act as a leading indicator for altcoin strength. After a healthy period of consolidation, the token recently surged past its $3.80 resistance. It is now approaching a critical $4.50 level. A breakout here may suggest broader altcoin momentum is imminent.

Despite this move, there is still room for a pullback. If SUI fails to hold above $4.50, a drop back to the $3 range is likely. This wouldn’t imply a bear market, but rather a normal retracement within an uptrend. Additionally, another inverse head-and-shoulders structure is forming, which could fuel the next rally.

ADA Could Surprise with a Sudden Surge

Cardano (ADA) has shown a pattern of long consolidation followed by explosive gains. Although ADA has lagged behind in recent months, it is now trading near a crucial zone between $0.61 and $0.67. A clean breakout from this area may trigger a sharp rally towards its previous all-time high.

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Significantly, historical price action suggests ADA could move 50% quickly once resistance breaks. MACD indicators support the idea of a short-term dip, possibly down to the 20-day moving average, before continuation.