On Wednesday, Ethereum (ETH) experienced a significant increase, surpassing the $2,700 threshold for the first time in over a week. This event has fueled optimism among cryptocurrency analysts, with many predicting that ETH could soon overcome the next resistance level and aim for the $3,000 target.
Ethereum’s Retest of the $2,700 Level
The cryptocurrency market witnessed a notable upswing on Wednesday, with Ethereum climbing above a critical resistance level. ETH experienced a 3.1% rise, reaching the $2,722 mark before slightly retracting to $2,710. Previously, ETH had been trading within a range of $2,430 to $2,650, causing concern among investors due to its inability to maintain support levels.
Despite the earlier worries, this recent increase signifies a 5.6% rise on a weekly basis, igniting a wave of positivity among the crypto community. Noted crypto trader CRG highlighted that Ethereum is currently testing a support level in its trading pair against Bitcoin (BTC) on a higher timeframe (HTF). According to CRG’s analysis, the ETH/BTC pair is retesting a significant HTF support at the 0.0377 level, a crucial zone during the 2020-2021 period.
CRG humorously remarked on Ethereum’s inconsistent performance despite the approval of spot ETH exchange-traded funds (ETF), likening it to a “toxic ex-girlfriend.” Similarly, crypto analyst Michaël van de Poppe pointed out the presence of a “massive bullish divergence” in the ETH/BTC chart, indicating potential upward momentum. Van de Poppe identified the 0.051 area as a pivotal zone for a trend reversal.
Can Ethereum Reach $3,000 in the Coming Weeks?
Several analysts have identified the $2,800 resistance level as the next critical hurdle for Ethereum, should it successfully maintain its position above $2,700. Analyst Crypto Yapper noted that ETH has recorded five consecutive green daily candles following a rebound from last week’s lows. The analyst believes that surpassing the $2,800 level could lead to a rally towards the $3,000 resistance, potentially signaling the onset of an altcoin season.
Michaël van de Poppe echoed this sentiment, suggesting that Ethereum might break past this crucial horizontal level within the next two weeks, having already reclaimed liquidity at the $2,450 level. According to van de Poppe, this momentum could drive ETH’s price toward $3,000 in November.
Market Volatility and Future Outlook
At present, Ethereum has encountered rejection at the $2,700 resistance level, hovering between $2,680 and $2,690. As of this writing, ETH is trading at $2,693, reflecting a 1.4% and 3.3% increase in daily and monthly timeframes, respectively. However, it’s important to acknowledge the potential for increased market volatility in the coming days, especially with heightened speculation surrounding the upcoming US presidential elections.
As the crypto market continues to exhibit dynamic shifts, investors and analysts remain vigilant, analyzing market trends and potential catalysts that could shape Ethereum’s trajectory in the weeks ahead.
