Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is currently on the verge of a remarkable upward rally following its breakthrough from a significant resistance level. This crucial breakout aligns closely with the recent U.S. presidential election results, where Donald Trump emerged victorious over Kamala Harris.
Understanding the Rise in ETH Price
The election of Donald Trump as the President of the United States catalyzed a substantial upward movement in the cryptocurrency market, impacting Ethereum (ETH) significantly. The aftermath of the election saw Ethereum break free from its consolidation phase, surpassing a strong resistance level. Over the past two days, ETH has experienced a surge of over 20%, reflecting a bullish trend across the digital currency landscape.
Ethereum (ETH): Technical Analysis and Future Projections
Expert technical analysis reveals that Ethereum (ETH) exhibits bullish tendencies, with a projected 23% upward momentum anticipated to reach the $3,340 mark in the coming days. This breakout is not an ordinary occurrence; it signifies a departure from a prolonged declining trendline resistance that ETH has been contending with since May 2024. Additionally, it marks a release from a three-month-long consolidation phase.
With the recent breakout, Ethereum has entered an uptrend, currently trading above the 200 Exponential Moving Average (EMA) on the daily time frame. However, for this bullish thesis to remain intact, ETH must maintain its position above the $2,880 support level; failure to do so may jeopardize the rally.
Analyzing Bullish On-Chain Metrics
On-chain metrics further bolster Ethereum’s favorable outlook. Data from the on-chain analytics firm IntoTheBlock indicates a 50% surge in large transaction volume for ETH, highlighting substantial participation from whales and institutional investors amid the prevailing bullish market sentiment.
This notable transaction volume suggests a promising sign for ETH holders, signaling the commencement of bullish participation. Additionally, ETH’s open interest has increased by 11% in the past 24 hours, showcasing a growing interest among traders and a rise in open positions compared to previous days.
With significant participation and rising interest, Ethereum has recorded a gain of over 7% in the past 24 hours, currently trading near the $2,890 level. During this period, its trading volume witnessed a 10% decline, indicating reduced activity from retail traders. This trend underscores the increasing involvement of institutional players in shaping Ethereum’s market dynamics.
