Ethereum Price Rebounds: Potential Surge Above $3000 Expected This Week
The recent price action of Ethereum has seen a notable rebound from its lows, hinting at the potential for a bearish continuation that has deviated from previous trends. The market sentiment surrounding the leading cryptocurrencies, Bitcoin and Ethereum, is currently showing significant strength. Despite a period of bullish divergence, these tokens have been under the influence of bearish pressure. This situation led to concerns that Ethereum’s price might retreat back to $2000, as the bulls struggled to push it beyond $2700. However, a recent upswing in prices has reignited hopes of a climb back to $3000, potentially paving the way for a sustained upward trend in the coming weeks.
The flow of Exchange-Traded Fund (ETF) investments has remained relatively neutral, with consistent outflows keeping the token under pressure. Notably, it took approximately two weeks after the launch of the spot Bitcoin ETF for BTC to hit bottom and begin its upward trajectory, a development that was missing from the ETH price rally. From a broader perspective, Ethereum’s price seemed to be constrained by bearish forces.
Nevertheless, the token retraced to its previous support level, setting the stage for a potential 4x to 5x rally in the near future. Traders are now eyeing price targets of $3000 or even $3500 as they anticipate a significant surge. Data from Santiment indicates a surge in Ethereum’s social dominance, with traders expressing heightened excitement about the prospect of reaching the $3000 or $3500 price levels. Additionally, traders are anticipating a substantial increase in Bitcoin’s price, potentially rising to $70,000 to $75,000 as it surpasses the $61,000 mark.
The recent price surge has bolstered traders’ optimism, with many now setting their sights on the $3000 to $3500 range. However, Ethereum’s price must surpass the interim resistance level, which has served as a strong support for over four months. Despite the bullish momentum, there are concerns about the potential for a larger price action, particularly around the $3000 mark.
Following the recent rebound, Ethereum has encountered resistance around the $2682 level, with the bulls showing signs of weakness. While the Relative Strength Index (RSI) has displayed a divergence after bouncing back from lows, the Moving Average Convergence Divergence (MACD) indicates a decline in selling volume. This situation suggests a likelihood of a bullish continuation, although sustained buying pressure is needed to break the consolidation phase between $2600 and $2800.
In conclusion, while reaching $3000 this week may present challenges for Ethereum’s price, unexpected developments could potentially shift the dynamics in favor of the token’s value.
