Ethereum Analyst Predicts $3,700 Once ETH Breaks Through Resistance
Ethereum has been trading at its highest level since late July, hovering around $3,470. This marks a notable rally for the second-largest cryptocurrency, which has managed to hold above the key 200-day moving average (MA) at $2,965. By sustaining this level, Ethereum confirms the bullish price structure, paving the way for continued momentum towards the next milestone, which is near the yearly high of $4,000.
Top analyst and investor Carl Runefelt recently shared his technical analysis of X, noting that Ethereum’s price action sets up a solid foundation for further growth. Runefelt said Ethereum is poised to surge higher once it breaks key resistance levels, indicating growing confidence among traders and investors.
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This bullish sentiment is further fueled by Ethereum’s continued on-chain activity and growing institutional interest, which continues to support its upward trajectory. However, a move above $4,000 will require Ethereum to overcome resistance zones that have historically triggered pullbacks.
As ETH consolidates gains, market participants are keeping a close eye on signs of the next breakoutwhich could set the tone for the rest of the year. Ethereum’s recent strength highlights its role as a market leader and bellwether of broader cryptocurrency trends.
Ethereum tests critical supply
Ethereum is testing a key supply area just below the $3,500 level, a key resistance level that could push the cryptocurrency towards yearly highs in the coming days. This level has become a focus for traders and investors as a break above it could signal a bullish continuation of Ethereum’s recent momentum.
Top analyst Carl Runefelt recently shared his insights on Xemphasizing the importance of this resistance. According to his technical analysis, once Ethereum breaks through the $3,500 mark, it could quickly climb to $3,700 within hours. Market sentiment surrounding Ethereum remains positive, with surging demand acting as a catalyst for further price increases.
Ethereum’s strength at this key level has also reignited speculation about a possible altcoin season. If ETH continues its upward trend and attracts more capital, it could pave the way for other altcoins to follow suit. Historically, Ethereum’s price action has been a leading indicator of broader market movements, and this time appears to be no exception.
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As ETH approaches this critical moment, all eyes are on its ability to maintain its upward momentum. A strong move above $3,500 would confirm the bullish structure and set the stage for Ethereum to dominate the market narrative in the coming weeks.
Key levels to watch
Ethereum is trading at $3,470, hovering below the key $3,500 resistance. This local high has become a key area of focus for traders and analysts, as a break above could set the stage for a sharp rebound. If Ethereum is able to forcefully break above this resistance, it could trigger a breakout that could push the price towards $3,900 within days.
However, the market remains cautious about the potential risks associated with this critical moment. Failure to break above the $3,500 mark could lead to sideways consolidation as Ethereum seeks stronger buying pressure to resume its upward momentum. In a more pessimistic scenario, a sharp correction could occur, pushing ETH back to lower levels to establish a more solid base of support.
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The current price action highlights the importance of this resistance area. A clear break above $3,500 could confirm Ethereum’s bullish structure and boost confidence in a continued uptrend.
On the other hand, any hesitation or rejection at this level may indicate the need for further consolidation before the next big move. As ETH approaches this critical moment, the market is watching closely to determine its next direction and potential impact on the broader cryptocurrency landscape.
Featured image from Dall-E, chart from TradingView
