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On Wednesday, the price of Ethereum (ETH) rose above the $2,700 level for the first time in over a week, sparking bullish sentiment among many cryptocurrency analysts. Some have suggested that the second-largest cryptocurrency will soon break the next resistance level and reclaim the $3,000 mark.
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Ethereum retests $2,700
Ethereum price rose above a key resistance level on Wednesday morning with most of the cryptocurrency market higher. The cryptocurrency rose 3.1% towards the $2,700 horizontal level, reaching the $2,722 level before falling to $2,710.
Over the past week, ETH has fluctuated between the $2,430 and $2,650 range after failing to maintain its support. This performance alarmed many investors and market watchers, who strongly criticized the price movement of cryptocurrencies throughout the year.
However, today’s jump represents a 5.6% increase in the weekly time frame, sparking bullish sentiment among the community. Crypto trader CRG male Ethereum is testing a support level in its trading pair against Bitcoin (BTC) on a higher time frame (HTF).
According to the chart, ETH/BTC is retesting HTF support at 0.0377 level. The 0.023-0.040 zone was a crucial area between 2020 and 2021, where ETH’s all-time rally began after breaking above the upper line of this range.
The trader suggested that Ethereum’s rally will be short-lived as the “king of altcoins” has performed “disappointing” despite exchange-traded funds (ETFs) approving ETH. “ETH is like your toxic ex-girlfriend keeping you coming back,” he joked.
Likewise, cryptocurrency analyst Michael van de Poppe Notice It is time to be bullish on ETH, indicating that there is a “massive bullish divergence” in the one-day time frame of the ETH/BTC chart, while it was “appearing” in the three-day time frame. Van de Poppe pointed out that the 0.051 area is the crucial area for a trend reversal.
Will ETH reach $3,000 in two weeks?
Many cryptocurrency analysts have identified the $2,800 resistance level as the next crucial area if Ethereum succeeds in reclaiming the $2,700 mark. Yaber cryptoanalyst He pointed out ETH has recorded five consecutive green daily candles since bouncing off last week’s lows.
For the analyst, if ETH crosses the $2,800 horizontal level, the cryptocurrency will rise towards the $3,000 resistance level and potentially start the altcoin season.
Likewise Van de Poppe Suggested Ethereum will break above the crucial horizontal level in the next two weeks, capturing liquidity at the $2,450 level and “returning to resistance.” According to the analyst, this could push the price of ETH to $3,000 in November.
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ETH was rejected from the $2,700 resistance level, which is hovering between the $2,680-$2,690 price range over the past hour. As of this writing, the cryptocurrency is trading at $2,693, an increase of 1.4% and 3.3% on the daily and monthly time frames.
However, it should be noted that the cryptocurrency market may continue to face high volatility over the next few days as speculation increases ahead of the US presidential election.
Featured image from Unsplash.com, chart from TradingView.com