Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, is now poised for a notable upside rally after breaking out from a strong resistance level. This crucial breakout occurred just after the U.S. presidential election results, where Donald Trump defeated Kamala Harris
Why ETH Price is Rising?
After Trump became president of the United States, a huge upside rally was witnessed across the cryptocurrency landscape, including in Ethereum (ETH), leading to a breakout from the consolidation zone and a strong resistance level. In the past two days, ETH has rallied by more than 20%.
Ethereum (ETH) Technical Analysis and Upcoming Level
According to the expert technical analysis, ETH appears bullish and is now poised for 23% of upside momentum to reach the $3,340 level in the coming days. This breakout is not a normal breakout, it is a breakout from a long-term declining trendline resistance that ETH has been facing since May 2024, as well as from the long consolidation ETH has been experiencing for the past three months.
With this breakout, has entered an uptrend as it is currently trading above the 200 Exponential Moving Average (EMA) on the daily time frame.
The bullish thesis for ETH will only hold if the asset maintains itself above the $2,880 level, otherwise, it may fail.
Bullish On-Chain Metrics
On-chain metrics further support ETH’s positive outlook. According to the on-chain analytics firm IntoTheBlock, large transaction volume for ETH has soared by 50%, indicating significant participation from whales and institutions amid bullish market sentiment.
Additionally, this notable transaction volume suggests a bullish sign for the ETH holders, as it hints that bullish participation has begun.
Additionally, ETH’s open interest has jumped by 11% in the past 24 hours and has been steadily rising. This increase in open interest suggests growing traders’ interest and more open positions compared to previous days.
With notable participation and interest, ETH has registered a gain of over 7% in the past 24 hours and is currently trading near the $2,890 level. During the same period, its trading volume dropped by 10%, indicating lower participation from retail traders.
