Ethereum’s price has been fluctuating within a range lately, capturing attention from analysts and investors alike. As of today, Ethereum (ETH) is trading near $2,741, showing a cautious trend in the market.
However, analysts believe that key price levels could play an important role in determining its direction over the coming weeks. The next few days will be critical for Ethereum’s price, and observing key levels could offer insight into potential ETH price movements.
Ethereum Price Action in the Coming Weeks
Ethereum price has shown a tendency to perform strongly in the latter part of Q1 over the past few years. A swing trader named Honey noted that historically, Ether has experienced upward movement during the second half of the first quarter.
This pattern has continued since 2020, even through bear markets. Ether’s price surged by 50% during the 2022 bear market, suggesting that a similar rally could occur in the upcoming weeks.
Honey’s analysis suggests that Ethereum could see an increase of 20% to 22% by the end of March 2025, possibly bringing its price closer to $3,500. This increase could depend on how Ethereum behaves over the next few weeks. For this to happen, the price must break through the $2,800-$2,850 resistance range. Without a clear move above these levels, the bullish expectations could be invalidated, and Ethereum might retest recent lows below $2,300.
ETH Price Key Resistance Levels for Bullish Breakout
One of the main challenges for Ethereum’s price is breaking through resistance levels. At present, Ethereum’s price is hovering just below $2,800, a crucial level for the asset. Ethereum’s market structure currently mirrors the drawdown period from mid-2024. This indicates that the price may face a continuation of sideways action unless a breakout occurs.
For ETH price to avoid prolonged sideways price action, it must close daily candles above the $2,800-$2,850 resistance zone. A failure to do so may lead to Ethereum testing the lower price range once again. However, a sustained price action above this level could signal a rally towards higher levels, including the $3,000 psychological mark.
Ethereum’s reserves across centralized exchanges are at their lowest level in nearly nine years. As of February 19, Ethereum reserves across all exchanges dropped to 18.95 million, the lowest level since 2016. This decrease in supply may suggest a tightening of available Ether, which could drive the price upward.
This supply shock scenario is typically seen when demand outpaces the available supply of an asset, leading to price appreciation. The decline in reserves is significant because it suggests that fewer Ether tokens are available for trading. If this trend continues, it could trigger a price rally, particularly if the demand for Ether strengthens. This factor, combined with rising interest in the Ethereum network, could pave the way for Ethereum to break through the $3,000 level.
Ethereum’s Golden Cross Emerges, ETH Price To $4K?
Ethereum’s chart shows some technical indicators that support a potential breakout. The 50-day moving average (MA) has crossed above the 100-day moving average, a Golden Cross. This crossover is typically seen as a bullish signal, indicating that Ethereum may experience upward momentum backing the Bitfiniex ETH whale activity which most is a catalyst for Ethereum price breakout.
Additionally, the MACD (Moving Average Convergence Divergence) indicator is showing increasing bullish momentum. The MACD line is crossing above the signal line, which suggests that buyers are gaining strength.
The histogram on the MACD is also turning green, further confirming the strengthening upward pressure. A breakout above the falling wedge pattern seen on Ethereum’s chart could see the price approach the $2,800 resistance area. If this resistance is breached, Ethereum may continue its upward trajectory to $4000.
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