As the community prepares for the integration of the Ethereum mainnet with the proof-of-stake Beacon Chain, bulls are targeting $3,000 as a significant resistance level.
A new week in the cryptocurrency market has brought more of the same sideways price action that the wider ecosystem has seen in recent months, as Bitcoin (BTC) maintains support near $41,000, despite some analysts warning that high inflation and rising interest rates could drive the top cryptocurrency to $30,000.
On the altcoin front, cryptocurrency expert Willy Woo recently tweeted that “Ether [is] gearing up to break upwards out of a very long term, 3.5-month negative trend line,” noting that “Ether [is] setting up to break upwards out of a very long term, 3.5-month bearish trend line.”
According to data from several analysts, the ETH price is now trading above support at $2,900, with bulls aiming to breach the $3,000 resistance level after being firmly rejected at that level in recent days.
Here’s what some analysts are saying about ETH’s near-term prospects, as well as what levels to watch if the price breaks higher or falls lower.
At $3,000, ETH must break over barrier.
Crypto trader and pseudonymous Twitter user “Rager” emphasised the coiling pattern of the current Ether price movement, posting the chart below and noting that “Ether continues to gently compress with lower-highs.”
“Waiting to see if price can push back up to $3000; would want to see that as the first level to stay above,” Rager wrote on Twitter.
Crypto trader and pseudonymous Twitter user “Cactus” had a similar outlook, posting the chart below, emphasising the importance of a price breakthrough over the “key trendline” around $2,860 and indicating one possible price trajectory heading forward.
“Price seems healthy, with a solid drop into this 0.618 fib level and LTF buyers buying into this support,” Cactus remarked. It’s possible that we’ll be able to stay here for a while. All eyes are on the $3000 level as a crucial resistance level.”
$2,800 is a lower level of support
Market analysts provided additional insight into the price action at these levels, indicating that “there is a good probability for a healthy bounce in Ethereum’s price action, which makes it likely that we’ll take the highs around $3,000.”
Following this declaration, numerous Ethereum analysts expressed caution, stating that “the question will be how strong we’re going to move from there.”
Ether gains ground on Bitcoin Cash (BTC).
The following chart, which shows a rise in the ETH/BTC pair and highlights the influence of the upcoming merge between the Ethereum mainnet and the Beacon Chain proof-of-stake system, was posted by trader and pseudonymous Twitter user “Cantering Clark,” who highlighted the influence of the upcoming merge between the Ethereum mainnet and the Beacon Chain proof-of-stake system.
“All signals indicate to strength for ETHBTC,” Cantering Clark remarked. The most crucial detail is that the storey is developing. There is no more positive date for the merger than an exact date.”
The total cryptocurrency market capitalisation is currently $1.867 trillion, with Bitcoin commanding 41.7 percent of the market.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.