Highlights:
- Ethereum price is currently trending toward the $2721.2 resistance
- A breach of the $2721.2 resistance could see Ethereum rally to $3000 soon
- Rising Bitcoin price and extreme negative sentiment around Ether are bullish signals
Ethereum (ETH) is showing signs of strength today. At the time of writing, Ethereum was up by 2.42%, trading at $2645.20. With positive momentum building, the charts indicate that Ethereum may be at the start of a notable bull rally.
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Technical Analysis – Ethereum Sending Early Signs of a Bull Rally
Ethereum has begun to gather strength, particularly after closing above the crucial $2547.6 resistance level on September 21. This breakout suggests Ethereum is ready for more upward movement in the short term, with the next target at $2721.2. Analysts believe Ethereum’s price could rally to $3k if the bullish momentum persists.
Ethereum’s recent gains reflect broader optimism in the cryptocurrency market. However, the path to $3000 is not without its hurdles. If Ethereum bulls lose momentum, there is a risk that the cryptocurrency could retest the $2547.6 support. In the worst-case scenario, a breach of this support could see Ethereum decline further to $2335.2.
While the short-term price action holds both risks and opportunities, the odds favor the bullish scenario. Ethereum’s price movement is not happening in isolation. Like many altcoins, Ethereum’s price is closely correlated with Bitcoin, which is currently sending strong bullish signals.
Bitcoin Rally Could Boost Ethereum Price
Bitcoin’s influence over the broader cryptocurrency market cannot be understated. As the largest cryptocurrency by market capitalization, Bitcoin often sets the tone for market sentiment and price action across altcoins, including Ethereum. Recent developments in Bitcoin’s price are particularly encouraging for Ethereum investors.
The recent rate cuts by the US Federal Reserve have increased liquidity in financial markets, boosting risk assets like Bitcoin. If Bitcoin continues its upward trajectory, there are strong indications that it could hit $70,000 or higher soon. This could, in turn, provide the necessary momentum for Ethereum to rally through its immediate resistance at $2721.2 and aim for the $3000 mark.
Sentiment Shift – From Bearish to Bullish?
Another factor in Ethereum’s favor is the recent negative sentiment surrounding the asset. Over the past few months, Ethereum has faced a wave of skepticism, with some analysts even going as far as to question whether Ethereum is “dead.”
Is #Ethereum dead? pic.twitter.com/cT2ClzIL2R
— Crypto Rover (@rovercrc) September 19, 2024
However, from a contrarian perspective, this wave of negativity could signal that the price has reached a bottom. In markets, extreme negative sentiment often marks the end of a downtrend and the beginning of a recovery as investors begin to take positions in anticipation of a rebound.
Recap – A Bullish Outlook for Ethereum
Ethereum’s recent price action and broader market conditions point to the early stages of a potential bull rally. With Bitcoin strong and sentiment around altcoins improving, Ethereum price appears poised for further gains. As long as Ethereum can break through resistance at $2721.2, the $3000 target is within reach in the short term.
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