PEPE Coin Poised to Surge 35% as Ethereum Forms Bullish Ascending Triangle Pattern

Pepe (PEPE), the second-biggest Ethereum (ETH) meme coin after Shiba Inu (SHIB), has plunged to the key support at $0.000010.

Pepe (CRYPTO: PEPE) price encountered a key support level on Monday after plunging 65% from its all-time high this year.

Pepe’s price decline aligns with the broader crypto sell-off, which is influenced by several factors, including the Federal Reserve's interest rate hikes and macroeconomic conditions.

However, Pepe's performance is also impacted by the ongoing underperformance of Ethereum (CRYPTO: ETH).

Ethereum, the second-largest cryptocurrency and the host blockchain for Pepe meme coin, has underperformed compared to other major layer-1 blockchains.

Over the past 12 months, Ethereum has declined by 5% while Bitcoin and Solana have surged by over 70%.

Ethereum has also lost market share in several sectors, including decentralized finance, meme coins, and non-fungible tokens.

This trend has impacted many Ethereum-based tokens, which have underperformed as investors shifted their focus to assets within the Solana ecosystem.

Despite the recent setback, some analysts remain bullish on Ethereum, predicting a potential surge to $4,000.

The coin has formed an ascending triangle pattern on the two-week chart, which is characterized by a horizontal resistance level and a diagonal trendline composed of higher highs and higher lows.

A strong bullish breakout will be confirmed if Ethereum surpasses the $4,000 resistance level.

Sustained breakout above this price could increase the likelihood of Ether reaching $5,000 in the long term.

Pepe price technical analysis: A strong Ethereum price breakout could also lift Pepe and other Ethereum-based tokens.

The daily technicals suggest that Pepe is positioning for a significant bullish breakout.

Oscillators such as the Percentage Price Oscillator and the Relative Strength Index have started forming a bullish divergence pattern.

This divergence occurs when these oscillators trend upward while the asset’s price remains in a downtrend, indicating a potential reversal in the upcoming sessions.

At the same time, Pepe is forming a bearish divergence pattern, which consists of two converging downward trendlines.

These lines are approaching their confluence level, which is often a point of bullish breakouts.

The first key level to watch for Pepe is the 200-day moving average at $0.00001351, which represents a 35% increase from its current price.

Further gains could push Pepe toward its all-time high of $0.000028, marking a 175% surge.

However, if Ethereum continues to weaken, Pepe could decline further, initially to $0.0000060 and then to $0.0000038, levels that marked its lowest swings in August and April last year.