$3K Ethereum price breakout likely delayed until October
2024.08.29 07:26
Market analysts are eying a potential Ether rally to $3,000, but it may only occur during the fourth quarter of 2024. How soon can Ether overcome the key $2,700 resistance?
Ether is setting up for a Q4 breakout above $3,000
The Ether (ETH) price appears to be setting up for a price breakout above the $3,000 psychological mark, according to crypto analyst Poseidon, who wrote in an Aug. 28 X post:
“Followed the plan, and my longs filled sub $2500. The price tested daily demand, cleaned equal lows and reclaimed back above it. Still early to talk but everything is looking good to send it above $3k.”
ETH/USDT, 1-hour chart. Source: Poseidon
Other analysts are also expecting a breakout. However, Ether’s price rally may be delayed until the fourth quarter of 2024, according to market analyst Elja Boom.
The analyst wrote in an Aug. 28 X post:
“ETH is still trading above EMA 50 support level. Price capitulation has happened. Now, the boring phase is going on where price keeps trading within a certain range. I’m still convinced of no breakout before Q4.”
ETH/USD, 1-month chart. Source: Eljaboom
The 50-day exponential moving average (EMA) is a technical indicator tracking the average price of a financial asset over the past 50 days, often used to determine local support.
Related: Can Bitcoin get a green monthly close above $64.3K?
In another bullish signal, Ether whales accumulated 200,000 Ether worth over $540 million in the four days leading up to Aug. 26, noted popular analyst Satoshi Sniper in an X post.
Ethereum: Balance by holder value. Source: Satoshi Sniper
Can ETH price overcome key $2,700 resistance?
Ether holds significant resistance around $2,700, which will continue to be a challenge to overcome, according to Aurelie Barthere, principal research analyst at Nansen onchain analytics platform.
The analyst told Cointelegraph:
“2.7k is the next resistance level for ETH, and there is not enough evidence that it is broken yet. Because price did not hold above this resistance for long enough and with enough volume.”
ETH/USD, 1-day chart. Source: Nansen
A hypothetical Ether rally above $2,700 would liquidate over $481 million worth of cumulative leveraged short positions across all exchanges, according to CoinGlass data.
ETH exchange liquidation map. Source: CoinGlass
On the other hand, Ether bears argue that a potential correction to $1,750 is possible, according to pseudonymous trader Mizuhara, who wrote in an Aug. 28 X post:
“Either dead cat bounce here or $1,750 next. Short and Easy.”
ETH/USD, 1-day chart. Source: Mizuhara
A dead cat bounce is trader slang for a temporary price recovery of an asset after a significant correction, followed by more downside.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
