Ethereum Price Levels to Watch Amid Recent Surge to 3-Month Peak

Key Highlights

• Ethereum surged to a three-month high, fueled by optimism around regulatory developments and record inflows into newly launched spot Ether ETFs.
• After a lengthy accumulation phase, ETH broke above a six-month descending channel with increased trading volume, accelerating gains over the weekend.
• Investors should keep an eye on key resistance points near $3,650 and $4,090, as well as crucial support levels around $3,250, $2,950, and $2,720.

Ethereum (ETH), the native token of the Ethereum blockchain, reached its highest price in over three months on Monday. This surge was driven by positive sentiment regarding potential regulatory easing and significant capital inflows into recently launched spot Ether exchange-traded funds (ETFs).

Market participants anticipate that a friendlier regulatory environment could accelerate Ethereum adoption, particularly in decentralized finance (DeFi), which leverages Ethereum's blockchain for peer-to-peer financial transactions through smart contracts.

According to crypto analytics platform CoinGlass, spot Ether ETFs experienced net inflows exceeding $215 million within three days post-election, marking their largest three-day cumulative inflow since their launch in late July.

Over the past week, Ethereum's price has surged approximately 38%, trading near $3,320, pushing its year-to-date gains to roughly 45%. Despite this growth, Ethereum has underperformed Bitcoin (BTC), which has more than doubled in value this year.

Below, we analyze Ethereum's chart using technical analysis to identify significant price levels that investors should watch.

Breakout from Descending Channel

Following a prolonged accumulation period, Ethereum's price broke above a six-month descending channel late last week, supported by above-average trading volume. This breakout led to accelerated gains over the weekend.

The relative strength index (RSI) confirms bullish momentum with a reading above 70, though it also signals potential overbought conditions that might cause short-term price volatility.

Let's explore the key technical levels on Ethereum's chart that are crucial for traders and investors.

Key Resistance Levels

The first major resistance to monitor is around $3,650. Investors who bought Ethereum at lower prices may look to take profits near this trendline, which connects previous countertrend rallies from late March, early April, and mid-June.

A strong breakout above $3,650 could propel Ethereum toward the next resistance near $4,090, close to the cryptocurrency's prominent swing high from March 2024.

Critical Support Levels

On any price dips, watch how Ethereum holds at $3,250, a support area aligned with a trendline connecting trading levels between April and July.

Falling below $3,250 might trigger a decline to approximately $2,950, near the upper boundary of the descending channel, where buyers may step in around the 200-day moving average and multiple lows formed in April, May, and July.

A deeper pullback could see Ethereum revisit support near $2,720, which corresponds to a multi-month horizontal support line linking peaks from early January through late October.

Note: The views and analysis expressed here are for informational purposes only and should not be considered investment advice. Please review our warranty and liability disclaimers for more information.

As of the date of this article, the author holds no positions in the securities mentioned.

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