Ethereum (ETH), renowned as the world’s second-largest cryptocurrency by market capitalization, is currently in the spotlight for its significant upside potential. This promising rally comes after a pivotal breakout from a robust resistance level, which coincided with the announcement of the U.S. presidential election results where Donald Trump emerged victorious over Kamala Harris.
Why is the ETH Price Rising?
Following Trump’s election as the President of the United States, the cryptocurrency market experienced a substantial surge, with Ethereum (ETH) being no exception. This post-election optimism propelled ETH beyond its consolidation zone and a formidable resistance level. Over the last 48 hours, Ethereum has surged by more than 20%, marking a period of remarkable growth.
Ethereum (ETH) Technical Analysis and Upcoming Levels
Expert technical analysis highlights Ethereum’s bullish trajectory, suggesting a potential 23% upward momentum that could propel its value to the $3,340 mark in the coming days. This is not merely a routine breakout; it signifies Ethereum’s escape from a prolonged declining trendline resistance that has been a barrier since May 2024. Additionally, it marks the end of a three-month-long consolidation phase.
Currently, Ethereum is on a positive trend, trading above the 200 Exponential Moving Average (EMA) on the daily chart. However, the bullish outlook remains contingent upon ETH maintaining its position above the $2,880 threshold. A drop below this level could undermine the bullish sentiment.
Bullish On-Chain Metrics
Ethereum’s promising outlook is further reinforced by bullish on-chain metrics. According to IntoTheBlock, a leading on-chain analytics firm, ETH’s large transaction volume has surged by 50%. This increase indicates substantial involvement from whales and institutional investors, reflecting the prevailing bullish market sentiment.
The notable rise in transaction volume is a positive indicator for ETH holders, suggesting that significant bullish participation is underway. Furthermore, Ethereum’s open interest has climbed by 11% within the last 24 hours and continues to rise, signaling a growing interest from traders and an increase in open positions compared to previous days.
As a result of this heightened participation and interest, Ethereum has achieved a gain of over 7% in the past 24 hours, currently trading near the $2,890 level. However, during this period, its trading volume has decreased by 10%, reflecting reduced participation from retail traders.
In conclusion, Ethereum’s recent breakout and the subsequent rally highlight the dynamic nature of the cryptocurrency market. As ETH continues to attract attention, investors and traders are keeping a close eye on its performance, particularly in light of the evolving market conditions and on-chain metrics.
