Ethereum (ETH) is the second-largest cryptocurrency by market capitalization and is currently poised for a significant upward rebound after breaking through strong resistance levels. This key breakout occurred shortly after the election results were announced, with Donald Trump defeating Kamala Harris.
Why is the price of ETH rising?
After Trump's election, the cryptocurrency market experienced a significant surge, with Ethereum (ETH) among those breaking out of the consolidation range and strong resistance levels. In the past two days, ETH has risen over 20%.
Ethereum (ETH) technical analysis and upcoming levels
ETH appears bullish, currently poised to gain 23% upward momentum, potentially reaching the level of $3,340 in the coming days. This breakout is not a typical breakout but rather a breach of the long-term downtrend resistance line that ETH has faced since May 2024, as well as the long-term consolidation ETH has experienced over the past three months.
With this breakout, it has entered an upward trend, as its current trading price in the daily timeframe is above the 200 Exponential Moving Average (EMA).
The bullish argument for ETH will only hold if the asset remains above $2,880; otherwise, it may fail.
On-chain metrics are bullish
On-chain metrics further support the positive outlook for ETH. According to data from on-chain analysis firm IntoTheBlock, the large transaction volume of ETH surged by 50%, indicating high participation from whales and institutions amid bullish market sentiment.
Additionally, this significant trading volume is a bullish signal for ETH holders, as it suggests that bullish participation has begun.
Additionally, ETH's open interest surged by 11% in the past 24 hours and has been steadily rising. The increase in open interest indicates heightened trader interest, with an increase in open positions compared to previous days.
Due to a significant increase in participation and interest, ETH has risen over 3.92% in the past 24 hours, currently trading at $2,927. During the same period, its trading volume decreased by 10%, indicating a decline in retail participation.
