Sahana Vibhute
The traders seem to have become pretty optimistic over the ETH price rally as the levels have barged above $3000. After a 3-month-long consolidation, Ethereum has raised within the bullish range, suggesting the price could be poised to achieve the crucial resistance, which may elevate the levels beyond the bearish influence. Now that the bulls have pushed the price towards the edge of the prolonged consolidation, will a breakout lead the price towards new highs above $5000?
Ever since the launch of the ETH ETF, institutions have displayed less interest in the token compared to Bitcoin. However, the spot Ethereum ETFs have seen a notable uptick in the inflows. The institutions have been accumulating ETH for the third consecutive day, recording nearly $217.9 million with zero outflows.
The inflows into the spit ETF have spiked following the U.S. election results that turned in favour of Donald Trump, who is the new president-elect of the state. Moreover, the Fed rate cuts of 25 bps also helped in the cause, which pushed the price beyond $3000. With this, the price is expected to enter the bullish range and eventually continue trading higher and reclaim the lost resistance. Now that speculation about the ETH price reaching $4000 has surfaced, here are the levels that may impede the rally before it reaches these levels.
As the weekend trade is fast approaching, the token is required to close the trade above $3000 or a maximum above $2900. This was believed to trigger a fine run to $4000 in the next few weeks. However, analyst Justin Bennett believes the token may face some hindrance at $3600 as it is repeating the 2022 pattern. Therefore, the price may continue to remain elevated to $4000 only when the token surpasses these pivotal resistances.
With this move, Ethereum has surpassed the market cap of Bank of America. However, the ETH price is expected to closely follow the dominant crypto, Bitcoin, only if the token surpasses the pivotal range. Therefore, the upcoming weekly close may have a larger impact on the Ethereum (ETH) price rally, reviving the possibility of ranging towards new highs.
