Ethereum (ETH) Poised for Potential Rise to $3500 Amid Bullish Trends
The Bottom Line
Ethereum (ETH) could make a significant move in the coming days. The cryptocurrency has strong support just below the $2900 mark. If the current bull trend continues, a rise to $3500 could be imminent. After Ethereum surpassed the psychologically important resistance mark of $3000 on February 25, the price fell back to $2900 in the following days.
Ethereum: Upward Trend Despite Setbacks
On February 25, Ethereum was able to overcome the psychologically important mark of $3000 and closed the trading session that day at $3014. However, in the following days, the price fell back to $2900. The NFT sales on the Ethereum blockchain recently reached their ten-month high. The trading volume amounted to $400 million.
Exit from Exchanges Signals Accumulation
On-chain analysis shows ETH outflows from exchanges worth $2.4 billion in 2024, indicating accumulation of the asset. The breakout from the trading range has not yet subsided. Ethereum showed a trading range in the second half of January that ranged from $2100 to $2600. Two demand zones at $2500 and $2650 were identified on the charts with smaller time frames.
Expected Increase in Ethereum Price
The market structure and momentum on the 3-day chart are firmly bullish. The rising OBV signals a high buying volume. Together, they indicate that the price of Ethereum is expected to continue to rise. The leap over the psychological resistance mark of $3000 is a significant step. It could strengthen the bullish sentiment already present in the market.
Key Resistance and Support Zones
The next higher resistance mark is at $3580, and ETH could aim for this area before a significant correction sets in. The liquidation heatmap shows three key areas of interest. These regions could represent important resistances before a bearish reversal. In terms of support, the area from $2800-$2880 also represents a significant liquidity pocket. A retest of this area would likely trigger a price increase.
Our Assessment
Although Ethereum has experienced a setback in recent days, the long-term outlook remains positive. The strong support just below the $2900 mark and the bullish market sentiment could trigger a rise to $3500. However, investors should keep an eye on the mentioned resistance and support zones and adjust their investment decisions accordingly.
Sources: Akashnath S, Saman Waris, Hyblock.
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
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