Ethereum is about to break out? What does a 26% surge reveal about ETH in the near future?
Ethereum (ETH) – the world’s second largest cryptocurrency by market capitalization – is showing positive signs after recently increasing by more than 26%. With the current price hovering around $1,784, analysts are starting to ask: Is ETH really ready for a strong breakout or is it just a temporary technical pullback?
echnical analysis: Breakout or bull trap?
ETH has broken through a key resistance level at $1,650, opening up expectations for a new uptrend. The next resistance zones are identified at $1,824 and $1,892. If these levels are broken, ETH is fully capable of moving towards $2,000 and even $3,000 in the medium term.
Technical indicators such as the RSI (Relative Strength Index) are maintaining in the positive zone, indicating that buying pressure is still dominant. At the same time, the MACD indicator has formed a bullish crossover, further strengthening the belief in the recovery trend.
On-chain Activity: Money Flows Into Ethereum
One of the important factors reinforcing the bullish outlook for ETH is on-chain data. Over the past 48 hours, the number of active addresses on the Ethereum network has increased by more than 10%, indicating increased interest from users.
In particular, money flowing into long-term storage wallets is at its highest level since 2018 - a sign that investors are expecting the long-term value of ETH and are no longer in a "short-term sell-off" mentality.
Macro and policy factors: Is the wind changing direction?
The recent approval of an Ethereum spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC) has sparked a wave of excitement in the crypto community. This event could attract institutional money into the market, laying the groundwork for a strong breakout of ETH in the coming quarters.
In addition, some analysts believe that a second term of Donald Trump – who tends to be more friendly to the crypto sector – could also create conditions for ETH and the crypto market in general to grow stronger.
Expert opinion: Is $3,000 realistic?
According to analysts from FXEmpire, if ETH maintains its upward momentum and overcomes short-term resistance, a target of $3,000 is completely possible this year. However, some dissenting voices also warn that the Ethereum ecosystem is still facing issues such as high transaction fees, scalability, and fragmentation among Layer 2 solutions, which could hinder growth if not addressed promptly.
Conclusion:
ETH is ready to break out – but caution is needed
Ethereum is facing a great opportunity to break out after a prolonged accumulation period. Signs from technical analysis, on-chain data, and macro factors all suggest that ETH may be preparing for a new bull cycle.
However, investors should still closely monitor market developments and be prepared for any scenario – especially in the context of the cryptocurrency market, which is always highly volatile and heavily influenced by global news and policies.
