Ethereum Trading at $3,470 as It Tests Key $3,500 Resistance
Ethereum is currently trading at approximately $3,470, its highest level since late July. This rebound indicates strong performance above the 200-day moving average (MA) of $2,965, establishing a bullish price structure. The next target for Ethereum is yearly highs near $4,000.
Analyst Carl Runefelt provided technical analysis on X, highlighting Ethereum's solid foundation for growth. He suggests that breaking key resistance levels could lead to a substantial rally, reflecting increased trader and investor confidence.
This positive sentiment is supported by consistent on-chain activity and rising institutional interest. However, surpassing $4,000 will require overcoming historical resistance zones that have previously led to pullbacks.
Ethereum Testing Crucial Supply
Ethereum is facing a critical supply zone just below $3,500. Successfully breaking this resistance could signal a continuation of its recent momentum. Runefelt indicated that if Ethereum surpasses $3,500, it might quickly rise to $3,700.
The current strength at this level has sparked speculation about an Altseason, where Ethereum's upward movement may influence other altcoins. Historically, Ethereum's price trends often indicate broader market behavior.
As Ethereum approaches this critical moment, maintaining upward momentum is essential. A strong push past $3,500 could confirm its bullish structure and shape market narratives in the coming weeks.
Key Levels To Watch
Currently priced at $3,470, Ethereum is close to the significant $3,500 resistance. Overcoming this barrier could initiate a major rally, potentially driving prices toward $3,900 shortly thereafter.
Caution remains in the market regarding potential risks. A failed breakout at $3,500 could result in sideways consolidation as Ethereum seeks stronger buying pressure. In a bearish scenario, a correction could bring ETH back down to lower support levels.
This price action underscores the significance of the resistance zone. A successful break above $3,500 would likely affirm Ethereum's bullish structure, while any rejection could signal the need for further consolidation before future movements. Market participants are closely observing this pivotal juncture for its implications on the overall cryptocurrency landscape.
Featured image from Dall-E, chart from TradingView