Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is now poised for a notable upward rally after breaking through a strong resistance level. This crucial outbreak occurred just after the US presidential election, where Donald Trump defeated Kamala Harris
Why is the ETH price rising?
After Trump became President of the United States, there was a huge upward rally in the cryptocurrency landscape, including in Ethereum (ETH), leading to a breakout from the consolidation zone and a strong resistance level. In the past two days, ETH has risen by more than 20%.
Ethereum (ETH) Technical Analysis and Upcoming Level
According to the expert technical analysis, ETH seems bullish and is now poised for 23% of upside momentum to reach the USD 3,340 level in the coming days. This breakout is not a normal breakout, but a breakout from the long-term falling trendline resistance that ETH has been facing since May 2024, and from the long consolidation that ETH has been experiencing over the past three months.
With this breakout, the price has entered an uptrend as the price is currently trading above the 200 Exponential Moving Average (EMA) on the daily time frame.
The bullish thesis for ETH only holds true if the asset remains above the $2,880 level, otherwise it could fail.
Bullish statistics in the chain
On-chain metrics further support ETH’s positive outlook. According to the on-chain analytics company InHetBlokHigh transaction volume for ETH has increased by 50%, indicating significant participation from whales and institutions amid bullish market sentiment.
Furthermore, this notable transaction volume suggests a bullish sign for ETH holders as it indicates that bullish participation has begun.
Moreover, ETH open interest has risen 11% in the last 24 hours and has been steadily rising. This increase in open interest indicates growing interest from traders and more open positions compared to previous days.
With notable participation and interest, ETH has registered a gain of over 7% in the last 24 hours and is currently trading around the $2,890 level. During the same period, trading volume fell by 10%, indicating lower participation from retailers.