Ethereum Breaks Resistance Levels, Eyes $3,500 Target

Ethereum has broken through two significant resistance levels in recent days, one against the US dollar and another against Bitcoin.

The first breakthrough saw Ethereum move above a descending trendline that had been controlling its daily price action for nearly a year. Analyst Crypto Patel notes that this shift in momentum favors buyers as long as Ethereum holds above this former trendline, which is currently around $1,850-$1,900.

If Ethereum can hold onto this support level, it may trigger a larger recovery towards $2,350 and $2,950 before eventually challenging the $3,350-$3,500 resistance zone. However, this latter target remains conditional and distant, with a daily close below the broken trendline potentially weakening the breakout and increasing the risk of another decline to $1,700-$1,550.

Ethereum has also broken through its 11-month downtrend against Bitcoin, suggesting that it may be entering a period of stronger relative performance. To confirm this breakout, Ethereum needs to hold above the broken trendline and reclaim 0.03 BTC. Continued strength could bring the 0.032 BTC and 0.034 BTC resistance levels into focus.