Ethereum Price: Breakout Stalls?
Ethereum (ETH) recently experienced a bullish breakout, surpassing the $2,800 resistance level. However, this rally may be encountering a significant hurdle. Let's examine the factors impacting ETH's price trajectory.
Ethereum's Price Action: A Bullish Breakout Falters?
- Ethereum's recent price increase: ETH broke through the $2.8k resistance level.
- Potential bearish reversal: Several indicators suggest a potential price correction could occur.
- February's supply zone: Breaking above this critical resistance zone, around $2,885-$2,915, would signal the continuation of the uptrend.
The recent surge in ETH staking, with 34.8 million ETH staked (nearly 30% of the circulating supply), points to growing institutional interest. The anticipation of Spot ETH staking ETFs adds further bullish sentiment. However, on-chain analysis by RektProof suggests that Ethereum isn’t yet in a distribution phase.
Trader RektProof, on X (formerly Twitter), highlighted a potential bearish reversal pattern following the price exceeding recent highs. This pattern, observed post-May price action, suggests potential short-term profit opportunities for traders familiar with technical analysis.
Analyzing Trading Triggers for Ethereum
Resistance levels at $2,716 and $2,788 were surpassed. A retest of the $2,774 support level before breaking above $2,800 provided a bullish signal. However, early signs of a reversal are present. The February supply zone ($2,885-$2,915) is a key level to watch. A break below $2,774 could signal short entry points, while surpassing $2,915 would indicate a continued bullish trend. The $3,000 level represents a significant psychological barrier.
The overall market sentiment also plays a role. With Bitcoin approaching $110,000 and Ethereum’s OBV indicating buying pressure, a substantial breakout remains possible.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Conduct your own thorough research before making any investment decisions.
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