Ethereum (ETH) has been outperforming Bitcoin (BTC) recently, with over 15% growth in the last two weeks, surpassing the $2,500 mark for the first time since May 2022. This surge, fueled by strong fundamentals and increasing investor optimism, may set the stage for a potential climb towards the $3,400 level.
Despite a slight correction after reaching a recent high of around $2,716, ETH’s overall momentum remains bullish. The approval of the first spot Bitcoin ETF by the SEC last week has raised ETF expectations, contributing to Ethereum’s rise above the $2,500 threshold, indicating a promising outlook for its short-term price increase.
ETH is currently trading around $2,514, having recorded an impressive gain of over 64% in 2023 and 10% in the past month alone. Despite a limited 1% drop in the last 24 hours, the significant growth signifies predominantly positive investor sentiment towards Ethereum, making it an appealing option for both long and short-term investment strategies.
Crypto analyst Ali Martinez highlighted Ethereum’s break from a rising triangle formation on the weekly chart, suggesting a target of $3,400 despite short-term price fluctuations. The next major resistance level for ETH is around $2,600, and a decisive move above this could propel Ethereum towards $3,000 and potentially the $3,400 zone. Conversely, failure to surpass this resistance could lead to a downtrend, with initial support at approximately $2,440 and further potential decline to the $2,300 support level.
Daily indicators such as the Moving Average Convergence Divergence (MACD) signal a bullish momentum, while the Relative Strength Index (RSI) above 50 suggests a neutral zone with potential for a short-term correction. Additionally, the Awesome Indicator and Chaikin Money Flow Indicator confirm a positive market sentiment with strong upward momentum and investor confidence in ETH.