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Ethereum is testing a key resistance level around $2,640, and many analysts believe that a break of this point could lead to a significant price rally. As the entire cryptocurrency market gains strength, optimism is growing among investors, who are eagerly waiting for Ethereum to catch up to Bitcoin’s recent rally.
Sentiment is positive, and traders are watching closely to see if ETH will make a move soon. Senior analyst and investor Karl Roenfeldt shared a technical analysis highlighting the bullish outlook for Ethereum in the coming days. He believes that a successful breakout above $2,640 could push ETH to much higher levels, in line with the overall market uptrend.
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With the market strengthening, next week will be crucial, not only for Ethereum but for the entire cryptocurrency space, as investors prepare for what could be the start of a new rally.
With key resistance being tested and momentum building, Ethereum’s next move will likely set the tone for its performance in the short to medium term. Investors and analysts are watching closely, as the outcome of this resistance battle could determine the direction of Ethereum’s price movement in the near future.
Ethereum needs a clean hack
Ethereum appears to be ready for a major rally, with price action indicating a move to new highs. The market is buzzing with excitement as greed builds and bullish momentum spreads, pushing ETH towards a potential breakout.
After weeks of accumulation, Ethereum is now close to breaking out of a bullish pattern, paving the way for a potential rally.
Leading analyst and investor Carl Roenfeldt He shared his technical analysis on Xhighlighting that Ethereum needs a clear breakout of the current ascending triangle pattern.
According to Runefelt, the upside target is $2,800, which represents the last major resistance level from the two-month accumulation phase that ETH went through. A successful breakout of this key structure would signal the beginning of a potential rally, fueling optimism throughout the market.
Ronfelt also stressed the importance of low-time frame price action, describing it as crucial to Ethereum’s long-term development. A break above the $2,800 level could open the door to higher levels, aligning ETH with the broader bullish sentiment seen across the cryptocurrency market.
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As bullish sentiment continues to build, traders and investors are watching closely, anticipating whether ETH will finally catch up to Bitcoin’s recent rally and set a course for new highs.
Key levels to watch
Ethereum is trading at $2,640 after six days of choppy price action, just below the key resistance level of $2,650. A break above this level is necessary to regain momentum, followed by a retracement of the 200-day Exponential Moving Average (EMA) at $2,797.
However, there is still a risk that ETH will fail to break through this resistance, resulting in a search for liquidity in areas of low demand. If the price cannot break above $2,650, a deeper bounce may occur as the market looks for support.
Despite this risk, as long as Ethereum price is above the $2,500 level, the broader bullish outlook remains intact, giving hope to investors anticipating an eventual rally.
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In the coming days, Ethereum’s ability to break through these resistance levels will be crucial in determining whether it will continue its upward trajectory or face a temporary setback. The market remains cautiously optimistic, with traders closely monitoring a decisive move above key resistance to confirm the next leg of the rally.
Featured image by Dall-E, chart from TradingView
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