Key Obstacle in ETH’s Path to Reclaim $3K Mark

Ethereum Price Prediction:  After Grayscale’s GBTC outflow slowed down, the overall market saw a reduction in selling pressure, sparking a relief rally across cryptocurrencies. This change in market dynamics, coupled with increased buying interest, allowed the Ethereum (ETH) Price to recover from its local support level of $2170 in late January.

Within the last two weeks, the coin price surged 6% to current trade at $2300. With Ethereum’s Dencun upgrade progressing at a steady pace, the coin value is likely to develop the current reversal in a more sustainable recovery.

New Found Support Bolster ETH Price to Hit $2700

• The Ethereum’s Fear and Greed index at 55% reflects the market sentiment remains neutral
• The supply pressure at $2390 may trigger a sideways action in ETH price for the coming week
• The intraday trading volume in Ether is $5.09 Billion, indicating a 34% gain.

The Ethereum price correction witnessed a surge in demand pressure at $2170 monthly support above the 50% retracement level. This healthy pullback and improved market sentiment triggered a positive turn to $2390 this week.

During this surge, the much-anticipated Dencun upgrade was deployed on the Sepolia testnet. This hard fork introduces “proto-danksharding,” a feature designed to improve scalability and lower transaction fees for Ethereum users. 

Once fully implemented, the Dencun upgrade is poised to substantially boost Ethereum’s network, potentially supporting over 100,000 transactions per second. The last test phase before Dencun goes live on the Ethereum mainnet is the Holesky testnet, set for February 7, 2024.

More testnet blobs on the way .oO

Dencun will activate on Sepolia Jan 30, and on Holesky Feb 7. If running a node on either network, now’s the time to update it!

Assuming both of these go smoothly, mainnet is next ✅https://t.co/QbEUACix2S

— timbeiko.eth ☀️ (@TimBeiko) January 25, 2024

This fundamental growth should bolster a natural growth in ETH price and return back to the recovery trend. Therefore, for the buyers to get a better conviction of recovery, they must break the key overhead resistances of $2390 and the 50% retracement level of correction at $2410.

The post-breakout rally may surge the Ether by over 10% to rechallenge the last peak of $2700. This level stands as the next key barrier before buyers reclaim the $3000 milestone.

• Exponential Moving Average (EMA): The 100-day EMA slope continues to act as strong dynamic support for ETH during minor pullbacks.
• Vortex Indicator: The VI+(blue) and VI-(pink) in a bearish crossover state reflect the correction trend is still active.

Related Articles: