Analysis

Is Ethereum Likely to Break the $3,000 Region in the Next 48 Hours?

In the past two days, Ethereum has rallied 20.88% from a low of $2,598. And as the market starts to move, ETH is anticipating more upside growth from current levels, which could occur if the upward pressure continues to mount.

Ethereum leads uptrend

The three price levels that have played a crucial role in Ethereum’s rallies and falls have been in effect since the beginning of the year. The first and current key resistance is $3,200, which has been tested as an area of resistance and support since August 2021 and plays an important role in understanding the upcoming price action.

Since January, ETH has made numerous attempts to break through this area, but all have failed.

This caused the token to fall to the $2,760 area, which served as support for ETH to reach the $3,200 area. Furthermore, Ethereum closed above the $2,760 level on February 26. Interestingly, although ETH is currently forming a red candle, price indicators have changed their signals to the upside.

ETH price chart | Source: TradingView

The Parabolic SAR indicator’s white dots moved below the candlesticks on February 26, indicating that an uptrend is active. The last time ETH did the same, the market rallied 34.57%. Therefore, if ETH can build fresh bullish momentum, the price is likely to break out of the $3,200 range.

The MACD also supports the uptrend. The MACD is in immediate contact with the signal line and is likely to cross in an uptrend.

However, alongside price indicators, Ethereum investors will have an important role to play if they want to create an uptrend.

Currently, trading volume has dropped from $20 billion in January to an average of $6 billion this month. But if ETH forms a green candle at the end of the month, trading volume could pick up again as new investors enter the market.

Transaction volume on the Ethereum network | Source: IntoTheBlock

Furthermore, HODLer dominates the network at a rate of up to 58.79%. This is always a positive signal for a sustained rally.

Ethereum Investor Allocation Chart | Source: Intotheblock

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.