Can ETH rise to $2.8K after gaining 8% weekly?

Ethereum is currently at a critical juncture, with its price testing the $2.6k to $2.7k resistance zone. A break above this range could indicate a medium-term bullish trend, which could drive the price towards $2.8K and beyond.

However, if the resistance holds, Ethereum may enter another bearish consolidation.

Technical Analysis

By Shayan

The daily chart

Ethereum has recently experienced a surge in price, driven primarily by increased buying activity around the $2.3K support level. This bullish momentum has allowed the cryptocurrency to break above the average trend line of the descending channel, indicating a possible bullish reversal.

However, the asset now faces a substantial resistance region, consisting of the head and shoulders (H&S) neckline and the 100-day moving average (MA) at $2.6K.

If Ethereum can break this key resistance zone, it would confirm the completion of the H&S pattern, which is a bullish reversal signal. This would indicate a shift to a medium-term uptrend, which could push the price towards the $2.8K threshold, another critical resistance level. Also, a break above the 100-day MA would highlight the dominance of buyers in the market.

However, this resistance zone could also lead to rejection as it is considered an area with significant supply. If the sellers regain control, it can lead to a bearish consolidation phase, further halting the upward movement in prices.

The 4 hour chart

On the 4-hour chart, Ethereum received strong support at $2.3K, forming a double bottom pattern, a bullish reversal indicator. This pattern fueled a strong price rally, pushing ETH into the resistance zone between the Fibonacci retracement levels of 0.5 ($2.6K) and 0.618 ($2.7K).

This resistance region has proven difficult to break, as Ethereum has faced multiple rejections from this area in recent months. The next price action will be critical in determining the next direction of Ethereum. If this resistance rejects the price, it may lead to a downward move towards $2.3 thousand. However, a break above $2.7K would open the door to more gains and a potential rally.

Onchain analysis

By Shayan

Taker’s bid-ask ratio is a key futures market metric that measures whether buyers or sellers are more aggressive in executing their orders. This relationship provides valuable insight into the sentiment of futures traders and can be an essential supplement to traditional price analysis.

As shown in the chart, after Ethereum’s bullish bounce near the $2.3 thousand level, there has been a significant increase in the execution of market buy orders in the futures market. This has pushed Taker’s buy-to-sell ratio to its highest in weeks, suggesting future participants are bullish on ETH’s short-term price path.

This metric indicates a change in market sentiment, as aggressive buying indicates that traders expect the price to continue to rise. If Taker’s bid/ask ratio exceeds 1, it reflects that buyers are overwhelmingly dominant, which often aligns with the start of an uptrend.

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