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ethereum (eth) has surpassed $2,500, now testing a critical supply level that could spark a massive rally for both eth and altcoins.
After several days of anxiety and uncertainty, yesterday's market surge has reignited optimism across the crypto space. Investors and traders are watching ethereum price action closely, as a break above this crucial zone could signal the start of a significant uptrend, potentially setting the stage for an alternate season.
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Top analysts and investors are awaiting confirmation that eth is about to rally soon. Carl Runefelt, a well-known analyst and investor, has shared his technical analysis on ethereum, suggesting that the long-awaited rally may be just around the corner.
According to Runefelt, eth's exit from the current supply zone could lead to a substantial price increase, attracting bullish momentum for ethereum and a broader range of altcoins.
The next few days are critical for ethereum price action as the market awaits signs that could define the direction of this potential rally. Investors remain optimistic and anticipate that eth could lead the market into its next major bullish phase.
ethereum tests crucial supply
ethereum has been trading within a bullish triangle formation since early August, and the moment of truth for a potential breakout may be near.
eth has underperformed btc all year, causing many investors and traders to question the strength of eth during this cycle. This trend caused a shift in sentiment as bitcoin continued to dominate, leaving ethereum behind.
However, during yesterday's market boom, ethereum showed renewed strength, outperforming bitcoin for the first time in a long time, indicating a possible change in market dynamics.
Prominent crypto analyst Carl Runefelt recently x.com/TheMoonCarl/status/1845891136423964869″ target=”_blank” rel=”nofollow”>shared a technical analysis on xhighlighting ethereum's imminent breakout of the bullish triangle pattern.
According to Runefelt, ethereum is approaching a key moment and a breakout of this pattern could lead to a major rally. It suggests that once eth breaks through, the next supply zone to target is around $3,400, which represents a significant bullish move from current levels.
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This optimistic outlook comes from renewed positive sentiment across the market and improving ethereum price action. Traders and investors are closely watching the coming days as a successful breakout could usher in ethereum's long-awaited uptrend and restore its strength relative to bitcoin.
eth technical levels to watch
ethereum is trading at $2,611 after a notable 7% rise yesterday. This bullish momentum allowed the price to break above the $2,500 mark, a critical resistance level that has been pushing the price down since early October.
Now, ethereum is less than 8% away from the 200-day EMA, currently at $2,806.
For the bulls to gain control and establish a sustained uptrend, eth must reclaim this 200-day EMA and close above the $2,800 level. Doing so would signal a continuation of bullish momentum and set the stage for a possible rally towards higher price levels.
On the other hand, if ethereum fails to hold above the $2,500 support level, a deeper correction may be on the horizon. In that case, the price could return to $2,300, where stronger demand could help stabilize the market.
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The next few days are crucial for ethereum as traders and investors are watching closely to see if the price can maintain its recent gains and break through key resistance levels.
Featured image of Dall-E, TradingView chart
