Ethereum (ETH), recognized as the world’s second-largest cryptocurrency by market capitalization, is on the brink of a significant upward trajectory. This potential surge follows a crucial breakout from a formidable resistance level, manifesting shortly after the announcement of the U.S. presidential election results, where Donald Trump emerged victorious over Kamala Harris.
Why is the ETH Price Rising?
The election of Donald Trump as President of the United States triggered an extensive upward rally across the cryptocurrency sector, including Ethereum (ETH). This rally facilitated a breakout from both the consolidation phase and a substantial resistance barrier. Over the last two days, Ethereum has experienced a remarkable rally, appreciating by over 20%.
Ethereum (ETH) Technical Analysis and Upcoming Levels
Expert technical analysis reveals that Ethereum appears bullish, with prospects of a 23% upward momentum, potentially reaching the $3,340 mark in the coming days. This breakout is indeed significant, as it marks a departure from a long-term declining trendline resistance that ETH has encountered since May 2024. It also signifies an end to the prolonged consolidation phase ETH has endured over the past three months.
The breakout has propelled Ethereum into an uptrend, as it is currently trading above the 200 Exponential Moving Average (EMA) on the daily chart. However, for this bullish outlook to remain valid, ETH must sustain its position above the $2,880 threshold. Falling below this level might compromise the upward momentum.
Bullish On-Chain Metrics
On-chain metrics further bolster Ethereum’s promising outlook. According to insights from the on-chain analytics firm IntoTheBlock, Ethereum’s large transaction volume has surged by 50%. This increase signifies notable involvement from institutional investors and cryptocurrency whales amid the prevailing bullish market sentiment.
This heightened transaction volume is a bullish indicator for ETH holders, suggesting a renewed positive participation trend. Moreover, Ethereum’s open interest has increased by 11% over the past 24 hours and continues to rise steadily. The increase in open interest points to a growing interest among traders, with more open positions compared to previous days.
With substantial participation and interest, Ethereum has recorded a gain of over 7% in the past 24 hours, currently trading near the $2,890 level. However, during the same period, its trading volume witnessed a 10% decline, indicating reduced engagement from retail investors.
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