Highlights:
- Ethereum has pushed through the $2391.1 resistance intraday
- A surge in bullish momentum could push Ethereum to $2500 short-term
- Positive developments in the Ethereum ecosystem and a rising BTC could be the trigger
Ethereum shows strong signs of recovery following a recent correction. Yesterday, Ethereum tested a low of $2,329.20, but as of the time of writing, it has risen by 1.23% to trade at $2,419.17. This price action suggests that Ethereum may be poised for further gains in the short term as bullish sentiment strengthens across the broader cryptocurrency market.
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Technical Analysis – Ethereum Pushes Through Intra-Day Resistance
After bouncing back from its 24-hour low, Ethereum has successfully breached the intra-day resistance level at $2,391.10. This is a positive development for Ethereum bulls, as rising trading volumes are amplifying the upward momentum. If this bullish momentum continues, Ethereum could soon target the next key resistance level at $2,461.70, marking an important price point in its recovery.
Should Ethereum break through the $2,461.70 resistance, there is potential for the cryptocurrency to rally toward $2,500 in the short term. Such a rally would be significant, signaling that Ethereum has fully shaken off its recent correction and is once again on a bullish trajectory.
The Risk of Correction
While the current outlook for Ethereum is promising, it is important to acknowledge the possibility of another price correction. If Ethereum fails to hold its current support at $2,391.10, it could fall back to retest the $2,329.20 low. However, based on the current market dynamics and Ethereum’s improving technical indicators, the likelihood of a significant downside appears minimal.
Instead, the odds favor continued upside momentum, boosted by improving sentiment in the broader cryptocurrency market, particularly Bitcoin.
Bitcoin’s Role in Ethereum’s Momentum
Bitcoin plays a crucial role in the price action of Ethereum and all altcoins. After experiencing its own dip below $60,000 yesterday, Bitcoin has since rebounded above $61,000, with bullish sentiment returning. As Bitcoin often sets the tone for altcoins like Ethereum, its current upward momentum is providing a tailwind for Ethereum’s price recovery.
Positive Developments in the Ethereum Ecosystem
Several factors within the Ethereum ecosystem are also contributing to the current bullish momentum. One of the most notable developments is the news from Stripe, a leading global payment platform.
Stripe recently introduced stablecoin payment options, and on the first day, this new service saw adoption in over 70 countries. Ethereum plays a key role in this development, as USDC payments on the Ethereum network are now available alongside Solana and Polygon, providing users with low-cost global transaction capabilities.
Stripe's new stablecoin payment option saw adoption in 70+ countries on day one! USDC payments on Ethereum, Solana, and Polygon are now available, providing lower-cost global transactions.#Stripe #Stablecoins #CryptoPayments #USDC #Blockchain #Fintech pic.twitter.com/qrtzI9co9t
— Nitish Vaibhav (@nitishvaibhav_) October 11, 2024
This development is highly bullish for Ethereum, as it highlights the growing real-world utility of its network in the global payments space. With more users and companies adopting Ethereum for its low transaction costs and decentralized nature, the demand for Ethereum continues to rise, further supporting its price action.
Confidence Despite Potential Selling Pressure
Another intriguing development that showcases Ethereum’s resilience is the news surrounding a large amount of Ethereum recently moved to exchanges by the Chinese government. Over 7,000 Ethereum seized from a Ponzi scheme were moved, with another 542,000 ETH, worth approximately $1.3 billion, still in the hands of the Chinese government, potentially waiting to be sold.
#Ethereum hanging on here by a fine line.
The Chinese 🇨🇳 Government has sent 7,000 $ETH seized from the PlusToken ponzi to #crypto exchanges. 😲
There are still over 542,000 #ETH worth $1,3B that could be next to go by the Chinese Govt from the scam. 👀 pic.twitter.com/bzHhhjEyuI
— Crypto Rand (@crypto_rand) October 10, 2024
Ordinarily, such a large-scale movement of Ethereum into exchanges could signal a looming selloff, which might drive prices down. However, Ethereum’s price continues to rise, suggesting that investors are confident that the network can absorb such a potential selloff without significant adverse effects on the price. This reflects the underlying strength of Ethereum’s demand, which is a highly bullish sign for the cryptocurrency’s future price action.
Conclusion – Ethereum Poised for Further Gains as Positive Factors Align
Ethereum’s price action over the last 24 hours suggests the cryptocurrency is building strong upward momentum following its recent correction. With rising trading volumes, bullish signals from technical analysis, and positive developments within the Ethereum ecosystem, the cryptocurrency is well-positioned for further gains in the short term.
While the possibility of a correction remains if Ethereum drops below its current support level of $2,391.10, the overall market sentiment and Bitcoin’s bullish recovery suggest that the odds favor continued upside momentum. Should Ethereum break through the key resistance at $2,461.70, a rally to $2,500 could be on the horizon.
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