Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, has recently demonstrated a potential for substantial growth. Following a significant breakout from a long-standing resistance level, ETH is now on the verge of a promising upward trajectory. This pivotal breakout coincided with the recent U.S. presidential election results, where Donald Trump emerged victorious.
Why is the ETH Price Rising?
In the aftermath of Trump’s election as the President of the United States, the cryptocurrency market experienced a notable surge, with Ethereum (ETH) being no exception. This widespread rally led to ETH breaking free from a prolonged consolidation phase and overcoming a formidable resistance level. Over the past two days, Ethereum has witnessed an impressive rally, gaining over 20% in value.
Ethereum (ETH) Technical Analysis and Future Levels
Expert technical analysis suggests that Ethereum is positioned for further upward momentum, with predictions indicating a potential 23% increase to reach the $3,340 mark in the coming days. This breakout is significant, representing a departure from a long-term declining trendline resistance that ETH has contended with since May 2024. Additionally, Ethereum has navigated through a prolonged consolidation period over the past three months.
The breakout has propelled ETH into an uptrend, as it currently trades above the 200 Exponential Moving Average (EMA) on the daily timeframe. However, the bullish outlook for Ethereum is contingent upon maintaining levels above $2,880. Failure to do so could undermine the current rally.
Bullish On-Chain Metrics
Supporting Ethereum’s positive outlook are bullish on-chain metrics. Data from the on-chain analytics firm IntoTheBlock reveals a 50% surge in large transaction volumes for ETH. This surge indicates significant involvement from institutional investors and cryptocurrency whales, reflecting a bullish market sentiment.
Moreover, this increase in transaction volume signals a positive trend for ETH holders, suggesting that bullish participation is gaining momentum. Additionally, Ethereum’s open interest has risen by 11% over the past 24 hours, indicating growing trader interest and an increase in open positions compared to previous days.
With substantial participation and interest, Ethereum has registered a gain of over 7% in the past 24 hours, currently trading near the $2,890 level. During the same period, its trading volume experienced a 10% decline, suggesting reduced participation from retail traders.
In conclusion, Ethereum’s recent breakout and the subsequent rally have positioned the cryptocurrency for a potentially significant upside. Investors and traders are closely monitoring the technical indicators and on-chain metrics to gauge future price movements. As the market evolves, Ethereum’s performance will likely continue to attract attention from both institutional and retail investors.
