Ethereum price has started its upward trend by surpassing $3400 and showing more than 5% growth in one day. ETH’s sudden rise has brought back energy to crypto market participants who now join the bullish trend for ETH.
Both institutional investors’ interest in Ethereum and Ethereum Foundation programs as they advance push ETH prices upward.
As of Jan. 31, Ethereum (ETH) is showing bullish momentum. The cryptocurrency has surpassed the $3,200 resistance level, trading at approximately $3,427.59, reflecting a 5% daily gain. As reported by Blockchain News earlier, Ethereum was set for a February rally. Let’s have a look: Is it really bullish momentum or a temporary wave?
How Ethereum Can Move Forward?
Ali Martinez’s latest market analysis shows that Ethereum remains in a downward trend. The Market Value to Realized Value Momentum shows a new negative trend that predicts a prolonged market decrease.
Holders who purchased Ethereum for the long term are changing their attitude and starting to sell their assets. Current on-chain metrics show that the price between $2,230 and $2,610 acts as strong resistance against a continuing downtrend. Ethereum’s major price support sits in the range of $2,800 to $3,000, where it shows clear signs of building an inverse head-and-shoulders pattern.
The analyst emphasized that Ethereum must breach the $4,000 resistance to pursue breaking through the $4,000 frontier. People have attempted to push through this barrier numerous times during the past four years, yet all attempts have failed.
Whales are collecting Ethereum stocks, showing they want to buy more. Enhanced purchasing from large investors might help Ethereum surpass the $4,000 price limit.
Ethereum can reach $5,080 to $6,770 when it breaks through the $4,000 barrier. The market actively tracks the $2,900 barrier during the short term because it establishes whether Ethereum will rise or fall next.
Trump’s World Liberty Financial Fuels Ethereum’s Market Surge
Suppose ETH exceeds $3,500 next, and analysts expect fast price growth to reach $3,550, opening the path for additional market increases. ETH tested an essential resistance barrier near $3,700 once and fell as low as $3,000 afterward.
Ethereum price experiences heightened market demand because investors see Trump’s World Liberty Financial plan as a significant growth opportunity. Because of this increased attention, market players are engaging with Ethereum’s blockchain ecosystem more fervently, which drives ETH prices upward.
Ethereum Price Analysis
According to a recent analysis, ETH has positive market projections. The bull pennant pattern formed over four years creates a setup for Ethereum to break out, possibly bringing its price to $5,000.
The technical indicators show Ethereum price growth in this market direction. ETH’s break of the $3,222 barrier starts an upward trend on day charts, which first aims for $3,310 and then expands to $3,425.50 if $3,222 is exceeded. The 50-day Exponential Moving Average shows in data that buying pressure will probably continue. If the price falls beneath $3,222, the bullish momentum may stop, and traders may move toward $3,017.30 instead.
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