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Ethereum Breaks Key Resistance Levels
After weeks of extended consolidation, Ethereum finally broke above the strong resistance at $2,800. This move signified the start of a bullish trend, pushing prices above the psychological level of $3,000. Ethereum peaked at approximately $3,440, demonstrating renewed investor confidence in the cryptocurrency market.
ETH/USD 1-day chart - TradingView
This breakout was supported by a broader market rally, including Bitcoin’s remarkable surge above $90,000. Bitcoin’s performance often serves as a market indicator, and its new ATH further fueled Ethereum’s upward momentum.
The Role of Consolidation and Market Sentiment
Ethereum’s price action highlights the importance of consolidation phases. Extended consolidation around the $2,800 mark provided a solid foundation for the recent breakout. Market sentiment also played a pivotal role, with increased buying pressure aligning with Bitcoin’s bullish performance. The psychological significance of surpassing $3,000 further enhanced investor optimism.
Ethereum Price Prediction: What Comes Next?
Following the breakout, Ethereum’s price started to adjust lower, currently hovering just above $3,000 due to profit-taking activities. However, the previous resistance zone between $2,800 and $2,900 is expected to turn into a robust support level. This area could act as a springboard for the next upward move.
ETH/USD 1-day chart - TradingView
Looking ahead, the $4,000 price mark appears attainable, especially as Bitcoin’s trajectory points towards $100,000. Ethereum’s correlation with Bitcoin and its strong market fundamentals suggest further gains in the coming weeks.
Key Takeaways for Investors
Support Levels: Keep an eye on the $2,800 to $2,900 range, as it’s likely to serve as a strong support zone.
Target Prices: Ethereum could revisit $4,000 once Bitcoin reaches $100,000.
Market Momentum: Monitor Bitcoin’s performance as a leading indicator for Ethereum’s next move.