Analyst Predicts Bullish Trend for Ethereum as ETH Retests $2,700
On Wednesday, Ethereum (ETH) surpassed $2,700 for the first time in over a week, generating bullish sentiment among crypto analysts. Some anticipate that ETH will break through the next resistance level and reach $3,000.
Ethereum Retests $2,700
Ethereum rose above a key resistance level on Wednesday, rallying 3.1% to hit $2,722 before retracting to $2,710. Over the prior week, ETH fluctuated between $2,430 and $2,650 after failing to maintain support, raising concerns among investors regarding its price action this year.
The recent increase marks a 5.6% gain over the week, fostering optimism within the community. Trader CRG noted that ETH is testing a support level against Bitcoin (BTC) in a higher timeframe (HTF).
The ETH/BTC pair is retesting HTF support at the 0.0377 level. The 0.023-0.040 zone was significant from 2020 to 2021, with ETH’s all-time high rally starting after breaking above this range.
Despite the recent surge, some traders believe it may be temporary due to ETH's underwhelming performance following the approval of spot ETH exchange-traded funds (ETFs). Crypto analyst Michaël van de Poppe suggested that bullish divergence exists in the one-day timeframe of the ETH/BTC chart, indicating potential upward momentum.
ETH To Hit $3,000 In Two Weeks?
Analysts have identified $2,800 as the next critical resistance level for Ethereum if it maintains the $2,700 mark. Analyst Crypto Yapper noted five consecutive daily gains since last week's lows.
If ETH breaks above the $2,800 level, it could rally toward $3,000, potentially initiating an altcoin season. Van de Poppe also indicated that Ethereum might surpass this horizontal level within two weeks, suggesting that liquidity from the $2,450 level has facilitated a rebound towards resistance.
Currently, ETH is facing rejection at the $2,700 resistance level, trading between $2,680 and $2,690. As of now, it is priced at $2,693, reflecting increases of 1.4% and 3.3% over daily and monthly timelines, respectively.
The cryptocurrency market may experience heightened volatility in the coming days due to increased speculation ahead of the US presidential elections.
