Ethereum price has shown renewed signs of strength as buyers continue to propel ETH higher towards an important resistance zone.
At the time of writing, ETH is trading at $2,417.58, up 1.54% over the last 24 hours. The cryptocurrency has recorded approximately $53.85 billion in daily trading volume, while its market capitalization stands at around $292.71 billion.
Ethereum Price Eyes Key Resistance Breakout
This move follows as Ethereum attempts to break through a significant resistance zone in the higher time frame. On August 22, crypto analyst Crypto Patel observed that ETH is making an attempt at strong resistance with strong volume participation in the higher time frame candle.
As per the analysis, a successful breakout followed by trading above this resistance would pave the way towards the $3,000 mark. However, ETH needs to sustain this breakout and not just spike above the resistance.
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Ethereum Momentum Strengthens
Technical analysis shows positive signs of an increase in buying pressure as well. Ethereum is trading above the upper Bollinger Band, which is now trading at $2,390.58, while the middle one is trading at $1,988.37.
Investors may take into account the fact that when the asset is trading above the upper Bollinger Band, the momentum of the price is gaining strength. In addition, the MACD line of Ethereum is currently trading at 121.18, significantly higher than its signal line (57.83).
However, the combination of increased volume, movement above the upper Bollinger Band, and MACD is favorable for this move. Nevertheless, indicators can change quickly due to decreasing buying interest.
Why the $3,000 Level Matters
The movement towards $3,000 will be a significant move for the Ethereum coin following the recent recovery in its price. A break above the resistance level may build market sentiment and possibly lead to more buying pressure.
The question now remains whether the ETH coin can manage to change this resistance into a support area. A daily close above the level will give a better indication than a temporary price break.
In any case, if the Ethereum price fails to remain above the resistance level, then it will fall again into the support levels.
What Happens Next for Ethereum Price
Ethereum’s subsequent move will heavily rely on how the price acts in the current resistance area. If there is strong volume and it closes above resistance, there will be more confirmation of the move towards $3,000.
At the moment, the technical picture looks good, but the confirmation will matter. ETH investors are likely going to look at the volume, MACD, and the upper Bollinger Band, where the breakout attempt is taking place.
The conclusion is clear: Ethereum price is moving up with strength, but the $3,000 level relies not only on the momentum but also on the confirmation of the breakout attempt.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
