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On Wednesday, Ethereum (ETH) surged above the $2,700 mark for the first time in more than a week, sparking bullish sentiment among some crypto analysts. Some people think that the second largest cryptocurrency will soon break the next resistance level and reclaim the $3,000 mark.
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Ethereum Retests $2,700
Ethereum surged above a key resistance level Wednesday morning as much of the crypto market surged. The cryptocurrency rallied 3.1% toward the $2,700 horizontal level, hitting $2,722 before retracing to $2,710.
Over the past week, ETH hovered between the $2,430-$2,650 range after failing to hold support. This performance worried many investors and market observers, who harshly criticized crypto price movements throughout the year.
However, today’s spike represents a 5.6% increase on a weekly basis, fueling bullish sentiment among the community. Crypto trader CRG notes that Ethereum is testing support levels on its trading pair against Bitcoin (BTC) on higher timeframes (HTF).
According to the chart, ETH/BTC is retesting the HTF support at level 0.0377. The 0.023-0.040 zone was a key area between 2020 and 2021, with ETH’s all-time high rally starting after breaking above the top line of this range.
The trader suggested that Ethereum’s surge was short-lived as the “King of Altcoins” had a “disappointing” performance despite the approval of an ETH exchange-traded fund (ETF). “ETH is like a toxic ex-girlfriend that you keep coming back to,” he joked.
Likewise, crypto analyst Michaël van de Poppe said that it is time to be bullish on ETH, pointing out that there is a “massive bullish divergence” in the one-day timeframe on the ETH/BTC chart, while it “popped” in the three-day timeframe . time period -days. Van de Poppe pointed out that the 0.051 area is a crucial zone for a trend reversal.
ETH To Hit $3,000 In Two Weeks?
Various crypto analysts have pegged the $2,800 resistance level as the next important zone if Ethereum manages to reclaim the $2,700 mark. Crypto analyst Yapper points out that ETH has recorded five consecutive green daily candles since bouncing off last week’s lows.
For analysts, if ETH breaks above the $2,800 horizontal level, the cryptocurrency will rise towards the $3,000 resistance level and potentially kick off the altcoin season.
Likewise, van de Poppe suggested that Ethereum will break above an important horizontal level in the next two weeks, as it takes liquidity at the $2,450 level and “runs back into resistance.” According to analysts, this could push the price of ETH to $3,000 by November.
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ETH has been rejected from the $2,700 resistance level, hovering between the $2,680-$2,690 price range over the past hour. As of this writing, the cryptocurrency is trading at $2,693, an increase of 1.4% and 3.3% on the daily and monthly timeframes.
Nonetheless, it is worth noting that the crypto market may continue to face high volatility over the next few days as speculation increases ahead of the US presidential election.
Featured Image from Unsplash.com, Chart from TradingView.com