Ethereum: Is $3.5K Just Around the Corner, Or Are We Dreaming?

by

Ah, Ethereum. The digital darling that just can’t sit still. Like a restless soul trying to decide if it wants to make a breakout or go back to its humble, melancholy existence. And now, the grand moment approaches: the 200-day moving average at $2.7K. Hold your breath, dear reader, for this is where the magic happens—or the agony, depending on your perspective. A successful leap over this resistance might just send ETH on a wild ride towards $3.5K. But, then again, it could all come crashing down faster than you can say “bear market.” 🍿

Technical Analysis

The Daily Chart

ETH, that cheeky little rascal, is currently waging a battle with the almighty $2.7K. It’s the critical 200-day moving average, a level so iconic that it’s practically a member of the family at this point. For a while, ETH sat under this threshold like a teenager sulking in their room, but now—oh, now—it’s inching its way back up, ready to break free. A confirmed breakout? Oh, the sweet sound of bulls cheering. The market sentiment would turn bullish faster than you can say “HODL,” with $3K as a very real possibility. But don’t get too carried away—$3.5K could be lurking, waiting to tease us.

Of course, this is Ethereum we’re talking about, and nothing is ever that simple. If ETH tries to break through and gets rejected, we might see it take a nosedive back towards the $2K support level, where it’ll have to regroup. It’s a cruel world out there, my friends. But if you’re a bull, you might want to hold your breath just a bit longer. 🐂

The 4-Hour Chart

Let’s zoom in a bit, shall we? ETH has recently found itself trapped in a bullish continuation wedge—sounds fancy, right? After some time in the trenches around $2.3K, it finally decided to break free. No more sulking. And now, it’s facing off against a key resistance at the $2.7K swing high. Will it push through? Or will it hit a wall and have to retreat for a brief moment, just to gather strength for another shot at glory? Time will tell, my friend. A slight pullback could be on the horizon, but fear not—this could be just the validation we need for a rally that will make $3K and $3.5K seem like a mere stepping stone. ⏳

Onchain Analysis

Ah, the heatmap. Binance’s liquidation heatmap, to be precise. If you haven’t been paying attention, you might have missed the dance of liquidation levels triggered at $2.7K. This is where the real action happens, folks. A bunch of liquidations swept away the shorts, and suddenly, there’s a lot more liquidity in the market. It’s like watching a messy breakup unfold on your favorite reality TV show. The drama is real.

What’s interesting now is that Ethereum has claimed the $2.5K resistance and is holding steady above the $2.7K mark. Could it be a sign of new strength? Possibly. The heatmap is giving us a tantalizing glimpse of what’s ahead: a gaping void of liquidation levels between the current price and $3.5K. This suggests that there may be less resistance ahead, and if ETH can keep up the momentum, we might just see it race towards the $3.5K finish line. Fingers crossed, but don’t get too comfortable just yet. 🚀

Read More

2025-05-22 15:44