On Wednesday, Ethereum (ETH) surged above the $2,700 mark for the first time in over a week, sparking a bullish sentiment among several crypto analysts. Some suggested that the second-largest cryptocurrency will soon break from the next resistance level and reclaim the $3,000 mark.
Ethereum surged above a key resistance level on Wednesday morning as most of the crypto market soared. The cryptocurrency rallied 3.1% toward the $2,700 horizontal level, hitting $2,722 before retracing to $2,710. Over the past week, ETH hovered between the $2,430-$2,650 range after failing to hold its support. This performance had worried many investors and market watchers, who have heavily criticized the crypto’s price action throughout the year.
However, today’s jump represents a 5.6% increase in the weekly timeframe, sparking a bullish sentiment among the community. Crypto trader CRG noted that Ethereum is testing a support level in its trading pair against Bitcoin (BTC) in a higher timeframe (HTF). According to his chart, ETH/BTC is retesting an HTF support at the 0.0377 level. The 0.023-0.040 zone was a crucial area between 2020 and 2021, with ETH’s all-time high rally starting after breaking above the upper line of this range.
The trader suggested that Ethereum’s surge could be short-lived, describing it as having a “disappointing” performance despite the approval of spot ETH exchange-traded funds (ETF). He humorously compared Ethereum to a “toxic ex-girlfriend that keeps you going back.”
Crypto analyst Michaël van de Poppe also weighed in, remarking that it’s time to be bullish on ETH. He pointed out a “massive bullish divergence” in the one-day timeframe of the ETH/BTC chart, which was also appearing in the three-day timeframe. According to van de Poppe, the 0.051 area is a crucial zone for a trend reversal.
Various crypto analysts have identified the $2,800 resistance level as the next critical zone if Ethereum successfully reclaims the $2,700 mark. Analyst Crypto Yapper noted that ETH has registered five consecutive green daily candles since bouncing from last week’s lows. According to him, if ETH breaks above the $2,800 horizontal level, it could rally toward the $3,000 resistance level and potentially kickstart the altcoin season.
Similarly, van de Poppe suggested that Ethereum could break above the crucial horizontal level in the next two weeks, as it captured liquidity at the $2,450 level and “ran back up to resistance.” According to the analyst, this could propel ETH’s price to $3,000 in November.
However, ETH has been rejected from the $2,700 resistance level, hovering between the $2,680-$2,690 price range for the past hour. As of this writing, the cryptocurrency trades at $2,693, showing a 1.4% and 3.3% increase in the daily and monthly timeframes. Nonetheless, it’s worth noting that the crypto market might continue facing high volatility over the next few days as speculation increases ahead of the US presidential elections.
