$2400 Breakout Will Trigger a Direction Rally
A steep support trendline is currently leading the recovery trend in the ETH price. If there is a breakout above the $2400 resistance level, it could trigger a strong upward movement. Potential resistances for the price rally include $2680 and $3000. The intraday trading volume in Ether has seen a significant gain of 68% at $20.8 billion.
An ascending trendline in the daily time frame chart indicates that the Ethereum price recovery is intact, and the current sideways trend may be a consolidation phase after a rally to regain bullish momentum. Interestingly, Ethereum whales have accumulated nearly $1 billion worth of Ether despite its underperformance compared to Bitcoin. This accumulation suggests that the potential approval of a spot Ethereum ETF by the US SEC could have a major impact on ETH.
Currently, the ETH price has jumped 3.77% and is testing the $2400 resistance level. If buyers manage to close a daily candle above this level, it could pave the way for further upward movement. A breakout could potentially lead to a 10% rise in ETH, with the next target at around $2680. Subsequent targets could be set at $3000 and $3280.
This Support Prevents ETH From Major Correction
For the past two months, the ETH price has been finding support from an ascending trendline. This support has resulted in several rebounds, indicating active accumulation by buyers during dips and signaling a sustainable recovery. Losing this support could increase selling pressure and trigger a new correction.
- Bollinger Band: An uptick in the upper boundary of the Bollinger band indicator suggests strengthening bullish momentum.
- Average Directional Index: A low value of ADX (15%) indicates that the ongoing consolidation has provided buyers with sufficient breaks to initiate a new rally.
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Hot Take: Ethereum’s Potential Breakout from $2400 Resistance Level
Ethereum, the second-largest cryptocurrency, is currently facing a lack of bullish momentum. However, there are indications that a breakout above the $2400 resistance level could trigger a significant rally. Ethereum whales accumulating large amounts of Ether and the potential approval of a spot Ethereum ETF by the US SEC are factors that could impact ETH’s price. The current support from an ascending trendline is preventing major corrections in the ETH price. If buyers succeed in closing above $2400, it could lead to further upward movement with targets at $2680, $3000, and $3280. Keep an eye on these developments as they could shape Ethereum’s future performance.
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