Ethereum (ETH) has risen above $2,500, now testing a critical supply level that could trigger a massive rally for both ETH and altcoins.
After several days of anxiety and uncertainty, yesterday’s market rally reignited optimism across the crypto space. Investors and traders are closely watching Ethereum’s price action, as a break above this crucial zone could signal the start of a significant upward trend, potentially setting the stage for an Altseason.
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Top analysts and investors await confirmation that ETH is poised for a recovery soon. Carl Runefelt, a well-known analyst and investor, shared his technical analysis on Ethereum, suggesting that the long-awaited recovery may be just around the corner.
According to Runefelt, ETH’s escape from the current supply zone could lead to a substantial price increase, attracting bullish momentum to Ethereum and a wider range of altcoins.
The next few days will be critical for Ethereum Price Action while the market awaits signs that could define the direction of this potential recovery. Investors remain optimistic, anticipating that ETH could lead the market into its next major bull run.
Crucial supply for Ethereum testing
Ethereum has been trading within a bullish triangle formation since early August, and the moment of truth for a potential breakout could be near.
ETH has underperformed BTC throughout the year, causing many investors and traders to question ETH’s strength during this cycle. This trend led to a shift in confidence as Bitcoin continued to dominate, leaving Ethereum behind.
However, during yesterday’s market rally, Ethereum showed renewed strength, outperforming Bitcoin for the first time in a long time, signaling a possible shift in market dynamics.
Prominent crypto analyst Carl Runefelt recently shared a technical analysis on Xhighlighting Ethereum’s imminent breakout from the bullish triangle pattern.
According to Runefelt, Ethereum is approaching a key moment, and a breakout of this pattern could lead to a major recovery. He suggests that once ETH breaks out, the next supply zone to hit will be around $3,400, representing a significant upward move from current levels.
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This optimistic outlook comes from renewed positive sentiment across the market and the improving price of Ethereum. Traders and investors are closely watching the coming days as a successful breakout could mark the start of Ethereum’s long-awaited uptrend and reestablish its strength against Bitcoin.
ETH Technical Levels to Watch
Ethereum is trading at $2,611 after a notable 7% increase yesterday. This upward momentum allowed the price to surpass the $2,500 mark, a critical resistance level that has been pushing the price lower since the beginning of October.
Ethereum is now less than 8% away from the 200-day exponential moving average (EMA), currently at $2,806.
For 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 potential recovery to higher price levels.
On the other hand, if Ethereum fails to hold above the $2,500 support level, a deeper correction could be on the horizon. In this case, the price could return to $2,300, where stronger demand could help stabilize the market.
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The next few days will be crucial for Ethereum as traders and investors are watching closely to see if the price can maintain its recent gains and break key resistance levels.
Featured image of Dall-E, TradingView chart