Ethereum has shown an impressive recovery from its recent low, finding strong support near a crucial price level. This comeback came amid selling pressure, with analysts attributing it to the bearish consolidation attracting buyers who took the opportunity to accumulate more Ethereum during the dip. This accumulation has been the catalyst for the recent price surge. Consequently, Ethereum’s price is currently set to breach its resistance line, although there remains a possibility that bears could still maintain their positions.
ETHBTC Ratio Makes A Breakout
Ethereum has made a solid surge and is now holding well above the crucial resistance of $2,300. Due to this surge, ETH price saw a total liquidation of $37.6 million, out of which short-positions were liquidated worth $26 million and bulls liquidated $11.5 million long-positions, according to Coinglass.
Interestingly, Bitcoin has managed to climb above the $43,000 mark, although its upward movement appears to be less rapid in comparison to Ethereum’s surge. According to tradingview, the ETHBTC pair has experienced a breakout as it gained significant buying interest around the 0.052 level.
This surge was particularly robust, with Ethereum’s breakout at $2,300 having a more pronounced impact than Bitcoin’s surge to $43,000. Consequently, investors in Bitcoin are increasingly reallocating their investments toward Ethereum, as Bitcoin struggles to meet the demand of buyers, resulting in a declining dominance.
ETH price might surge in the coming weeks as the upcoming Dencun upgrade might bring bullish hopes. This upgrade will reduce Ethereum transaction fees, improve smart contract operations, and boost bridge and staking protocol performance, benefiting Layer 2 projects like Optimism and Arbitrum. This upgrade will also help address congestion issues. Additionally, the potential approval of an Ethereum spot ETF in 2024 is expected to drive demand and price growth, potentially attracting trillions in capital inflows.
What’s Next For ETH Price?
Ether has recovered from its steep decline as buyers showed confidence near $2,200. The price is currently maintaining well above $2,300, aiming to test its upcoming resistance level. As of writing, ETH price trades at $2,368, surging over 6.5% from yesterday’s rate.
Recently, Ether’s price is forming an ascending channel pattern, which will be confirmed if the price breaks through the key resistance level at $2,400-$2,550. A completion of this bullish formation suggests a potential target of $3,100. However, resistance is expected in the $2,500-$3000 mark.
A key indicator of potential weakness would be a drop below the moving averages, hinting at intensified selling at higher levels. A break below the channel’s uptrend line would further tilt the odds in favor of the bears, indicating a failure of the bullish pattern and possibly leading to more downward movement.
In such a case, ETH price will drop toward $1,970. If buyers fail to defend this level, we might see the ETH price consolidating around $1,800.