Ethereum Approaches Key Resistance: Analysts Forecast $3,500 Surge
ethereum (ETH) Surges 1.8% Amid Strong Market Momentum
ethereum (ETH) has experienced a notable increase of 1.8% over the last 24 hours, reaching a price of $2,987 on July 13. This upward trend is attributed to robust technical indicators, significant inflows into exchange-traded funds (ETFs), and the liquidation of short positions by traders.
Liquidations at $3,000 Spark Breakout Potential
The recent rally has been propelled by over $4.57 million in liquidations of short positions, as bearish traders were compelled to exit their trades when ETH neared the $3,000 resistance level. Liquidation heatmaps indicate a concentration of stop-loss orders between $2,800 and $2,900, which have now established a new support zone following a successful retest by ETH.
Michaël van de Poppe, a well-known crypto analyst, emphasized that the market trend has shifted positively. He considers any pullbacks below $2,900 as prime buying opportunities, anticipating that ethereum could reach the $3,500 mark in the upcoming weeks. “The trend for ETH is clearly upward, indicating significant potential for further gains,” he remarked.
Rising Demand for Spot ETFs
The favorable technical outlook is further bolstered by increasing macroeconomic flows into ethereum investment products. Recently, spot ETH ETFs recorded an impressive $907 million in weekly inflows, reflecting a growing interest from institutional investors. This surge in capital is reminiscent of the ETF-driven momentum that previously propelled Bitcoin to its all-time high of over $118,000.
Market Analysis and Future Projections
Currently, ethereum holds a market capitalization of $360.6 billion, with a 24-hour trading volume of $14.1 billion. Although trading volume has decreased by 40% compared to previous days, the price stability suggests that bullish sentiment remains strong. Traders are particularly focused on the psychological $3,000 level; a decisive break above this threshold, supported by sustained trading volume, could pave the way for a rally toward the $3,500 target.
About the Author
Kosta has been immersed in the cryptocurrency sector for more than four years. He aims to provide diverse viewpoints on various topics and appreciates the industry’s transparency and dynamic nature. His work emphasizes balanced reporting on events and developments in the crypto landscape, ensuring that readers receive information from an impartial standpoint.
