Can ETH Soar to $2.8K After Gaining 8% Weekly?

ethereum is currently at a critical juncture, with its price testing the $2.6K-$2.7K resistance zone. A break above this range could indicate a medium-term uptrend, which could push the price towards $2,800 and higher.

However, if the resistance holds, ethereum may enter another bearish consolidation.

Technical analysis

By shayan

The daily chart

ethereum has recently seen an increase in price, mainly driven by increased buying activity around the $2.3K support level. This bullish momentum has allowed the cryptocurrency to break above the middle trend line of the descending channel, indicating a possible bullish reversal.

However, the asset now encounters a substantial resistance region, consisting of the head and shoulders (H&S) neckline and the 100-day moving average (MA) at $2.6 thousand.

If ethereum can break through this key resistance zone, it would confirm the completion of the H&S pattern, which is a bullish reversal signal. This would indicate a shift towards a medium-term uptrend, which could push the price towards the $2,800 threshold, another critical resistance level. Furthermore, a break above the 100-day MA would highlight the dominance of buyers in the market.

However, this resistance zone could also cause a rejection, as it is considered an area with significant supply. If sellers regain control, this may lead to a bearish consolidation phase, halting further bullish price movement.

The 4 hour chart

On the 4-hour chart, ethereum received strong support at $2.3k, forming a double bottom pattern, a bullish reversal indicator. This pattern fueled a sharp price increase, pushing eth into the resistance zone between the 0.5 ($2,600) and 0.618 ($2,700) Fibonacci retracement levels.

This resistance region has proven difficult to break as ethereum has faced multiple rejections from this area in recent months. The next price action will be critical in determining the next direction of ethereum. If this resistance rejects the price, it may trigger a downside move towards $2,300. However, a break above $2,700 would open the door to further gains and a possible rally.

Chain analysis

By shayan

The taker bid-sell ratio is a key futures market metric that measures whether buyers or sellers are more aggressive in executing their orders. This relationship provides valuable insight into futures traders' sentiment and can be an essential complement to traditional price analysis.

As shown in the chart, after ethereum's bullish bounce near the $2.3k level, there has been a significant increase in buy order execution in the futures market. This has pushed the buyers' bid-sell ratio to its highest level in weeks, suggesting that future participants are optimistic about eth's near-term price trajectory.

This metric indicates a change in market sentiment, as aggressive buying indicates that traders expect the price to continue rising. If the buyer's bid-sell ratio exceeds 1, it reflects that buyers are overwhelmingly dominant, which often aligns with the start of an uptrend.

<!– ai CONTENT END 1 –>