Ethereum Breaks Crucial Resistance; Will ETH Hit $3,000?

Vignesh Karunanidhi
Ethereum

Ethereum (ETH) gained over 6% in the last 24 hours, notching its third straight day of upside. The recent rally coincides with the wider crypto market awakening from its months-long slumber as Bitcoin topped $50,000. With bullish momentum accelerating, analysts watch for ETH to challenge key resistance levels to the psychological $3,000 mark.

After rangebound trading between around $2,185 and $2,250 for several weeks, ETH finally broke out above the $2,330 resistance level that had capped previous rally attempts this year. Strengthening upward momentum saw prices gain 6% Monday and extend higher.

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The asset now trades for around $2,645. Still, analysts caution that Ethereum may face selling pressure near the $2,700 zone that repeatedly rejected upside breakouts last fall.

Can Ethereum hit $3,000?

The daily Moving Average Convergence Divergence (MACD) histogram shows sustained buying pressure via its rising trajectory. Additionally, the MACD lines appear on the cusp of a bullish crossover that could indicate further gains ahead.

If the bulls keep control and shatter resistance around $2,700, ETH would eye retest $2,850 and then the elusive $3,000 handle according to Fibonacci extension levels. All eyes are fixated on whether ETH can build enough momentum to conquer these barriers over the short term.

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Bigger-picture bull cases hinge on an eventual daily close beyond the psychologically crucial $3,000 milestone that has hovered over crypto markets for the past year.  

Changelly analysts predict that ETH can hit a high of $2,808 in February. However, the price can also depend on the trajectory of Bitcoin and whether it can sustain its momentum.