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Ethereum (ETH): Can Buyers Break Past This Key Price Zone?

Ethereum has enjoyed a widely good 2023 run, despite the bearish conditions for most of the year. However, a key price level stands in the way of further gains for bulls.

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Ethereum (ETH) has enjoyed a rollercoaster in December. The second-largest cryptocurrency by marketcap hit a 20% increase, bringing its Year-To-Date price increase to 105%.

Despite the bullish run, buyers have found a key price zone difficult to push past. Will an uptick in daily trading volume serve as the catalyst for buyers to progress past this price resistance?

Buying momentum stuck at critical resistance level

ETH’s price has made a series of lower highs this month, rising from the $2,000 price zone to touch a December high of $2,450 briefly. However, the $2,405 resistance level has stood in the way of further gains for buyers.

The first attempt by buyers to crack the level on 9 December led to a 12% retracement. Despite bulls recovering superbly from the price retracement, ETH’s price action has stalled at the resistance level again over the past 24 hours.

The four-hour chart showed bulls have nearby support at the $2,334 price level. This could act as a rebound level for bulls with a bullish candle close above the support level sustaining the buying pressure.

ETH/USDT on TradingView (4H Timeframe)

With ETH registering a jump in its daily trading volume over the past day, this could maintain the buying pressure. Thus, buyers could attempt to break the bearish resistance and extend the bullish run to $2,500.

Day traders can wait for a bullish candle above $2,405 on the four-hour timeframe before opening long positions with short-term profit levels at $2,500.

Buyers can be encouraged by the Moving Average Convergence Divergence (MACD) maintaining its bullish crossover with green bars above the zero level. Also, the Relative Strength Index (RSI) remained above the neutral 50, despite dipping out of the overbought zone. This signaled that bullish momentum was still present.

Thus, if the overall bullish sentiment in the market continues, it could push Ethereum to $2,500 in the short term and $2,700-$2,800 in the medium to long term.


Disclaimer: This article does not constitute trading, investment, financial, or other types of advice. It is solely the writer’s opinion. Please conduct your due diligence before making any trading or investment decisions.

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