Following a 43% surge over the last week, Ethereum (ETH) bulls have successfully broken through the $3,200 resistance level and are now setting their sights on reaching the psychological milestones of $3,500 and $4,000. Technical analysis from CryptoCrypto indicates that the $3,562 level could play a crucial role in determining the next major price movement.
The recent surge in network activity and transaction volume has underscored a significant demand for the Ethereum network, leading to a bullish outlook on higher timeframes owing to the recent price rally.
Significance of $3,562 on Longer Timeframes
A week ago, Ethereum appeared to be breaking down below an ascending triangle formation, signaling a bearish trend. However, the price quickly reversed and recorded gains of 43.1% since last Tuesday, revealing the breakdown as a false signal. Analyzing the past two months as a range formation would have provided a more accurate assessment.
Key indicators such as the On-Balance Volume (OBV) reaching three-month highs and the Relative Strength Index (RSI) indicating strong bullish momentum at 79.5 support a positive outlook. Ethereum may undergo a consolidation phase in the coming days, particularly as it faces resistance levels from June and July.
On a weekly timeframe, the $3,562 level served as a crucial lower high that marked the beginning of a downtrend post-July. A successful breach of this level would likely propel ETH towards the $4,000 target.
Potential Upside for Ethereum
An analysis of the six-month liquidation heatmap revealed multiple liquidity clusters extending up to the $4,000 mark, with the $3,562 range from July standing out as a significant concentration of liquidity. The sparse liquidation levels to the downside suggest a greater probability of Ethereum moving upwards in the near future, although traders should remain vigilant for volatility in shorter timeframes.
Disclaimer: The opinions expressed in this article do not constitute financial, investment, or trading advice. They solely reflect the author’s viewpoint on the subject matter.