Will $ETH surpass $3,500?

ethereum ($eth) has started to recover after hovering below $3,420 all week. The December high of $4,077 remains out of reach, but there are hopes that eth will surpass the $3,500 resistance.

This rally could be due to the 16.29% increase in the 24-hour trading volume of ethereum ecosystem tokens. The cumulative market capitalization of all projects on ethereum now exceeds $495 billion.

Will this rebound be enough for a comeback? Let's take a closer look at the $eth price action.

Mixed signals for $eth, but long-term trend is bullish

The Average Directional Index (ADX) and Stochastic RSI suggest a weak trend for $eth. This means that even if $eth were to take the path of recovery, getting back to its peak will take time.

However, the Moving Average Convergence Divergence (MACD) indicator is surely bullish, as are the moving averages.

Yesterday, the bulls briefly took $eth to $3,499, but the token recovered to $3,440. Now, $3,500 is a critical psychological resistance level that $eth must overcome to strengthen the bullish trajectory.

If $eth fails to break above the $3,500 zone, it may find support at $3,420. The next support line lies at the 50% Fibonacci retracement level of $3,310.

Fortunately for the ethereum community, tokens on the network are thriving. The Department of Government Efficiency (DOGE), Hoppy ($HOPPY), Apu Apustaja ($APU), Neiro ethereum ($NEIRO), and Pikaboss ($PIKA) are among the top meme coin winners today.

The popularity of ethereum as a meme coin network creates constant demand for $eth. This means that $eth recovery is a matter of “when,” not “if.”

Two sides of the same coin (meme)?

In this bull run, meme coins are forming two distinct niches: pump and dump coins (shitcoins, if you will) and utility tokens under a meme façade.

Companies like Fartcoin ($FARTCOIN), SPX6900 ($SPX), and Gigachad ($GIG) fall into the first category. They generated a lot of buzz and made it to the top, but how long will they maintain their momentum?

Shiba Inu ($SHIB), Pudgy Penguins ($PENGU) and Floki Inu ($FLOKI) now lead the second category. However, the top could soon change as the ethereum-based Meme Index project unveils the world's first meme coin index.

Through one of the four Meme Index baskets, tailored to different risk appetites, you can diversify your meme coin investments to spread risk.

Whether you invest in titans like $DOGE or pump-and-dump tokens like $FARTCOIN, the potential returns could be higher as you make up for losses.

He $MEMEX pre-sale started recently, with a token now worth $0.0148639. Early adopters have invested $1.5 million so far and pre-sales are quickly gaining momentum.

$MEMEX holders will have a say in key development proposals when the Meme Index platform launches. On top of that, they can stake their tokens at 1500% APY; There will be no other opportunity to increase your holdings at that rate.

Final comments

While $eth's short-term price trend is uncertain, its long-term prospects remain strong. The thriving ecosystem of innovative apps and projects like meme index will likely drive sustained demand for $eth.

Meanwhile, we remind you to DYOR before investing in any project. There are no guarantees in the cryptocurrency market, so invest only what you can afford to lose.