This article is also available in Spanish.
ethereum has been trading at its highest levels since late July, hovering around $3,470. This marks a significant rebound for the second-largest cryptocurrency, which has managed to stay above the crucial 200-day moving average (MA) at $2,965. By holding this level, ethereum confirmed a bullish price structure, paving the way for continued momentum as it approaches its next milestone: yearly highs near $4,000.
Prominent analyst and investor Carl Runefelt recently shared his technical analysis on x, noting that ethereum's price action has built a solid foundation for further growth. According to Runefelt, ethereum is poised for a substantial rally once it breaks key resistance levels, indicating increased confidence among traders and investors.
Related reading
This bullish sentiment is further fueled by ethereum's continued on-chain activity and growing institutional interest, which continue to support its upward trajectory. However, breaking above $4,000 will require ethereum to break through resistance zones that have historically caused pullbacks.
As eth consolidates its gains, market participants are watching for signs of the next breakout, which could set the tone for the rest of the year. ethereum's recent strength underscores its role as a market leader and indicator of broader cryptocurrency trends.
ethereum tests crucial supply
ethereum is testing a crucial supply zone just below the $3,500 level, a key resistance that could push the cryptocurrency to yearly highs in the coming days. This level has become a focal point for traders and investors as breaking above it would likely signal a bullish continuation of ethereum's recent momentum.
<a target="_blank" href="https://x.com/TheMoonCarl/status/1860947397473398907/photo/1″ target=”_blank” rel=”nofollow”>Noted analyst Carl Runefelt recently shared his thoughts on xemphasizing the importance of this resistance. According to their technical analysis, once ethereum breaks the $3,500 barrier, it could quickly rise to $3,700, potentially within hours. Market sentiment around ethereum remains bullish, with rising demand a catalyst for further price gains.
ethereum's strength at this critical level is also reigniting speculation about a possible Altseason. If eth continues its upward trajectory and attracts more capital, it could pave the way for other altcoins to follow suit. Historically, ethereum price action has been a leading indicator of broader market movements, and this time appears to be no different.
Related reading
As eth approaches this pivotal moment, all eyes are on its ability to maintain bullish momentum. A strong push above $3,500 would confirm the bullish structure and set the stage for ethereum to dominate market narratives in the coming weeks.
Key levels to consider
ethereum is trading at $3,470, settling below the crucial $3,500 resistance level. This local high has become a key area of focus for traders and analysts, as surpassing it could set the stage for a significant rally. If ethereum manages to overcome this resistance strongly, it could trigger a breakout that drives the price towards $3,900 within days.
However, the market remains cautious about the potential risks associated with this crucial moment. A failed breakout of the $3,500 mark could lead to sideways consolidation as ethereum looks for stronger buying pressure to resume its upward momentum. In a more bearish scenario, a substantial correction could occur, causing eth to return to lower levels to establish a stronger support base.
Related reading
The current price action highlights the importance of this resistance zone. A clear break above $3,500 would likely confirm ethereum's bullish structure and reinforce confidence in a continued uptrend.
On the other hand, any hesitation or rejection at this level could indicate the need for further consolidation before the next major move. As eth approaches this critical juncture, the market is watching closely to determine its next direction and the potential implications for the broader crypto landscape.
Featured image of Dall-E, TradingView chart
