Ethereum Aims to Break $2,750 Resistance for Potential $3,400 Target
Ethereum has increased over 8% following Donald Trump's election victory, generating renewed investor optimism. However, ETH remains below a crucial resistance level that has constrained its price since early August.
This resistance is critical for Ethereum to regain bullish momentum. Analysts, including crypto expert Inmortal, suggest that ETH may be preparing for a significant breakout. Inmortal's analysis indicates that if ETH pushes above this resistance, it could enable a sustained rally. The market's positive response to Trump's win, who is perceived as pro-crypto, has enhanced sentiment, leading to expectations of increased volatility and upside potential for Ethereum.
Investors are monitoring ETH's movements closely; any breach above the current resistance could indicate the start of a stronger upward trend. As Ethereum approaches this key level, market participants anticipate a pivotal moment for ETH’s performance this cycle.
Ethereum Pushing Key Supply
Ethereum aims to break the critical resistance at $2,750, which has pressured ETH since early August. Overcoming this barrier is essential for confirming a sustained rally. Analyst Immortal recently shared a technical analysis outlining a $3,400 price target for ETH if it clears this resistance.
Inmortal noted that despite being referred to as the “most hated coin” in the current market, Ethereum warrants attention due to its potential for recovery. Investors frustrated with ETH's underperformance compared to other assets view a breakout above $2,750 as potentially transformative for sentiment and price action.
The upcoming days will be crucial as the market reacts to Trump's election victory and prepares for the Federal Reserve’s interest rate decision. Trump's win has already generated bullish momentum across the crypto market, and Ethereum could leverage this sentiment shift. However, volatility may persist, and unexpected news from the Fed could influence ETH's direction.
If ETH maintains a position above $2,750 and continues to rise, the $3,400 target outlined by Inmortal could be attainable, marking a robust recovery phase for Ethereum. The crypto community is closely observing this breakout level, which could define Ethereum’s performance in the forthcoming months.
ETH Technical Analysis
Ethereum is currently trading at $2,620 after a notable 12% increase from recent lows at $2,355. This movement provides bulls with hope for an impending rally. Nonetheless, ETH must surpass the critical $2,750 resistance level for bullish momentum to continue.
This resistance coincides with the 200-day exponential moving average (EMA), an important indicator of long-term strength. A successful breakout and retest of this level would signal a shift in market sentiment, indicating that ETH is on track to regain bullish control.
The 200-day EMA typically serves as a significant support level once the price holds above it. Should Ethereum close above this level and sustain the price, further upward movement could ensue. Conversely, failure to break above $2,750 may lead to consolidation or a retracement to lower demand levels around $2,500 or below. Bulls must stay alert as the coming days are critical for determining Ethereum’s next move.
Featured image from Dall-E, chart from TradingView