Summary Points
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Short-term Momentum Shift: Ethereum is gaining attention as it approaches a key resistance level around $3.4K, following a surge from the $2.7K demand zone, indicating increased buying activity.
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Resistance Challenges: The price faces significant resistance at the confluence of the 100-day moving average and a historical supply area, making this a critical decision zone for future price movements.
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Improved Demand: Whale-sized spot buyers are returning to the market, as indicated by clustering green spots on the order size chart, suggesting potential accumulation and resilience against downside risks.
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Key Reaction Zone: The $3.4K–$3.5K area will be crucial in determining if the recent bullish recovery leads to a trend shift or remains a temporary bounce within an ongoing corrective structure.
Ethereum Shows Strong Signs of Revival but Key Hurdles Approach
Ethereum (ETH) has recently captured attention with a notable shift in its momentum. The cryptocurrency exhibits an upward trend after bouncing from the $2,700 demand zone. This surge indicates growing interest among buyers, particularly as it heads toward critical resistance.
On the daily chart, ETH is moving toward a significant area around $3,400. This resistance zone combines the 100-day moving average with a historically strong supply area. As ETH approaches this level, analysts expect potential reactions or consolidations. For now, the price remains within a broader descending channel. A breakthrough above the resistance would signify a shift in market sentiment.
Shifting to the 4-hour chart, ETH’s recent price recovery appears more defined. After finding support at the lower boundary of a wedge formation, the asset rallied to approximately $3,330. However, this breakout does not yet confirm an overall trend reversal. The primary hurdle lies in the $3,300 to $3,450 range. A successful move past this area would suggest sustained upward momentum. Conversely, failure to maintain this level could trigger a pullback towards previous supports.
From a sentiment perspective, recent on-chain data highlights increased whale activity. The Ethereum Spot Average Order Size chart indicates a rising participation from larger buyers. This shift often points to accumulation phases, hinting that strong hands now support the market.
Ethereum’s current standing showcases both opportunities and risks. Its price reaction around the $3,400 to $3,500 zone will play a crucial role in determining the future direction. As the technology continues to evolve, stakeholders should remain cautious yet optimistic about Ethereum’s potential impact on the broader cryptocurrency landscape.
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