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Ethereum (ETH) has been trading in a tight range, capturing the attention of analysts and investors alike. As of today, ETH is priced around $2,741, reflecting a cautious market sentiment. However, critical resistance and support levels could determine its next move in the coming weeks.
Ethereum’s Price Action and Historical Trends
Historically, Ethereum has shown strong performance in the latter half of Q1. A well-known swing trader, Honey, pointed out that since 2020, ETH has consistently seen bullish momentum during this period—even in bearish markets. Notably, Ethereum rallied by 50% during the 2022 bear market, hinting that a similar surge could occur in the coming weeks.
According to Honey’s analysis, Ethereum could witness a 20%-22% increase by March 2025, potentially pushing the price closer to $3,500. However, for this to materialize, Ethereum must break past the critical resistance range of $2,800-$2,850. Failure to do so could result in a retest of recent lows below $2,300.
PRICE PREDICTION FOR TOP COINS END OF BULL CYCLE 🚀 $BTC $500K$ETH $20K$OPUL $69$SOL $2K$BNB $5K$XRP $20$ADA $75$AVAX $280$DOT $90$LINK $260
— King 100x Gems (@KingCryptoAryan) May 27, 2024
WHAT ARE YOU HODLING FOR THAT #1000X?!?!?
Key Resistance Levels for a Bullish Breakout
Ethereum is currently struggling to surpass the $2,800 resistance zone, mirroring its mid-2024 price consolidation phase. If ETH manages to close daily candles above the $2,800-$2,850 range, it could signal the start of a bullish rally towards the psychological $3,000 mark. Otherwise, prolonged sideways movement or a downward correction may be imminent.
Adding to the bullish narrative, Ethereum reserves on centralized exchanges have plummeted to their lowest level since 2016, currently standing at 18.95 million ETH. This decline suggests a potential supply squeeze, which could drive prices higher if demand continues to rise.
Golden Cross Signals Ethereum’s Path to $4,000
Technical indicators are also aligning for a potential Ethereum breakout. The 50-day moving average has crossed above the 100-day moving average, forming a Golden Cross—a classic bullish signal. Additionally, the MACD indicator is flashing green, indicating growing buying pressure. If Ethereum breaks above its current wedge pattern, it could reclaim $2,800 and push towards $4,000 in the near future.
Also Read: Ethereum’s Ascending Triangle Sparks Bullish Sentiment, Is ETH Set for New All-Time Highs
With increasing whale activity and dwindling exchange reserves, Ethereum’s next move could be explosive, making the upcoming weeks crucial for traders and investors alike.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
