Ethereum has staged an impressive recovery from recent lows, finding strong support near important price levels. The comeback came amid selling pressure, which analysts attributed to a bearish consolidation that attracted buyers who took the opportunity to accumulate more Ethereum during the downturn. This accumulation has been the catalyst for recent price surges. As a result, the price of Ethereum is currently set to breach the resistance level, but there remains a chance that bears will still hold their positions.
ETHBTC rate caused a breakout.
Ethereum has shown a solid upward trend and currently remains well above the important resistance level of $2,300. According to Coinglass, this surge caused the price of ETH to liquidate a total of $37.6 million, with short positions liquidating $26 million worth and bulls liquidating $11.5 million worth of long positions.
Interestingly, Bitcoin has risen above $43,000, although its rise appears to be less rapid than Ethereum’s surge. According to Tradingview, the ETHBTC pair experienced a breakout near the 0.052 level, garnering significant buying interest.
This surge was particularly strong, with Ethereum’s break above $2,300 having a more pronounced impact than Bitcoin’s $43,000 surge. As a result, Bitcoin investors are increasingly reallocating their investments towards Ethereum as Bitcoin struggles to meet buyer demand and its dominance declines.
ETH price could surge in the coming weeks as the upcoming Dencun upgrade could bring some bullish hope. This upgrade will benefit Layer 2 projects like Optimism and Arbitrum by reducing Ethereum transaction fees, improving smart contract operations, and improving bridge and staking protocol performance. This upgrade will also help address congestion issues. Additionally, the possible approval of an Ethereum spot ETF in 2024 is expected to boost demand and prices, potentially attracting trillions of dollars in capital inflows.
What’s next for ETH price?
Ethereum recovered from a sharp decline as buyers showed confidence near $2,200. The price is currently holding above $2,300 to test the upcoming resistance level. At the time of writing, the price of ETH is trading at $2,368, a surge of more than 6.5% from yesterday’s price.
Recently, the price of Ether has been forming a rising channel pattern, which will be confirmed if the price breaks the key resistance level of $2,400-$2,550. Completion of this bullish formation presents a potential target of $3,100. However, resistance is expected around $2,500-$3000.
A key indicator of potential weakness is a decline below the moving averages, suggesting that selling will intensify at higher levels. A break below the channel’s uptrend line tilts the odds further in favor of the bears, signaling a failure of the bullish pattern and potentially leading to further downside moves.
In this case, the ETH price falls to $1,970. If buyers fail to defend this level, we could see ETH price consolidating around $1,800.