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Ethereum is testing a key resistance level around $2,640, and many analysts believe that breaking through this point could trigger a significant price rally. As the entire crypto market strengthens, optimism is growing among investors, who are eagerly waiting for Ethereum to catch up with Bitcoin’s recent rally.
Sentiment is positive and traders are closely watching to see if ETH will make a move soon. Analyst and investor Carl Runefelt shared technical analysis highlighting an optimistic outlook for Ethereum in the coming days. He believes that a successful breakout above $2,640 could push ETH to much higher levels, aligning with the overall market uptrend.
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As the market strengthens, the next week will be crucial, not only for Ethereum but for the entire crypto space, as investors prepare for what could be the start of a new rally.
As key resistances are tested and momentum builds, Ethereum’s next move will likely set the tone for its performance in the short to medium term. Investors and analysts are closely monitoring the situation, as the outcome of this resistance battle could determine the direction of Ethereum’s price action in the near future.
Ethereum needs a clean breakout
Ethereum appears poised for a significant rally, with price action suggesting a move towards new highs. The market is in turmoil as greed increases and bullish momentum builds, pushing ETH towards a potential breakout.
After weeks of accumulation, Ethereum is now flirting with exiting an uptrend, paving the way for a possible surge.
Analyst and investor Carl Runefelt shared his technical analysis on X, emphasizing that Ethereum needs a clean break from its current ascending triangle pattern.
According to Runefelt, the upside target is $2,800, which marks the last major resistance level in the two-month accumulation phase that Ethereum has been experiencing. A successful breakout of this key structure would signal the start of a potential rally, fueling optimism in the market.
Runefelt also highlighted the importance of this price action in a shorter time frame, calling it crucial for Ethereum’s long-term development. Moving above $2,800 could open the door to even higher levels, aligning ETH with the broader bullish sentiment seen in the crypto 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 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 breakout above this level is essential for bulls to regain momentum, followed by a recovery to the 200-day exponential moving average (EMA) at $2,797.
However, there is a risk that ETH may fail to break through this resistance, resulting in a search for liquidity in areas of lower demand. If price fails to break above $2,650, a deeper retracement could occur as the market looks for support.
Despite this risk, as long as Ethereum holds above the $2,500 mark, the broader bullish outlook remains intact, giving hope to investors expecting 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 continues its upward trajectory or faces a temporary setback. The market remains cautiously optimistic, with traders closely watching a decisive move above key resistance to confirm the next phase of the rally.
Featured image of Dall-E, chart by TradingView
