Ethereum (ETH) Stays Strong As Bulls Prepare For $3,500 Test

Ethereum (ETH) continues to trade above $3,100, buoyed by technical breakouts and increasing on-chain strength. This bullish momentum comes at a time when Bitcoin remains the focus due to rising macroeconomic and geopolitical concerns, such as tensions in the Middle East.

The daily structure of Ethereum exhibits a breakout of the falling parallel channel, making the region of 3,000 a crucial support. Price just entered the resistance range of $3,300-3,700 but encountered selling pressure and closed bearish candles. 

The 100-day and 200-day moving averages also coincide with this zone, and, therefore, it turns out to be a challenging indicator that bulls will have to recover to continue the uptrend.

RSI is healthy and is cooling off after being overbought. Another upside push can be supported by a higher low at around $3,000, although the overall day-in-day-out direction line has not been broken. The optimistic view is true as long as ETH remains over $2,700, yet it is significant to regain $3,500 to strengthen continuation.

Source: TradingView

ETH Setup Stays Valid As Long As Support Holds

Analyst Crypto Candy highlighted that Ethereum is acting as anticipated. It has hit the lower end of the level of $2,600 to $2,700, and it is now aiming at the $3,400 to $3,600 range. This situation remains intact provided that ETH sustains its levels above the 2,600-2,700 support zone.

Source: X

Also Read: Ethereum Foundation Highlights Zero-Knowledge Proofs as Strategic Scaling Solution

Moreover, another analyst, Kamran Asghar, mentioned that ETH is registering increasing lows and its momentum is turning up. In his opinion, there is a bullish reversal underway, and the next action will drive ETH over $3,400 and potentially fetch further profits.

Source: X

Trading Volume Surges As Open Interest Slips Slightly

CoinGlass data show that trading volume has increased significantly by 226.21% to $50.96 billion. Conversely, Open Interest has declined by 1.51% and is now at $39.88 billion. The ETH OI-Weighted Funding rate is 0.0059%, which implies that the market has a neutral mood.

Source: CoinGlass

The price performance of Ethereum has been positive, and there is an apparent emphasis on regaining key resistance levels. The support of $3,000 remains intact, and with the positive momentum, Ethereum may keep its trend in the next few days. The market is still so wary, and Ethereum is still impressive on its technical front.

Also Read: Tether Freezes $182 Million in USDT on Tron Wallets