Ethereum Price News: Road to $2,800 Cleared After Key Resistance Breakout

Ethereum (ETH) has booked a 14% jump in the past 7 days, jumping past a key resistance at $2,150 as market sentiment continues to improve.

ETH is the best-performing token in the top 5 during this period, outpacing Solana (SOL) by more than 2% as evidence of an imminent relief rally kept piling up.

Last week, we emphasized that whale activity confirmed an ongoing phase of accumulation, as deep-pocketed players acquired over $480 million worth of ETH during the first 12 days of the month.

Market Sentiment Recovers as Cryptos Surge Above Key Levels

Today’s bullish breakout confirms that Ethereum may have already hit its local bottom, setting the stage for a strong move toward $2,800 in the near term.

Trading volumes have jumped by a staggering 200% in the past 24 hours alone, crossing the $28 billion mark and accounting for 10% of the asset’s circulating market cap.

Moreover, crypto short liquidations spiked to $300 million during this same period, and have climbed to $670 million in the past 4 days alone.

Market sentiment has also improved dramatically in the past few weeks. The Fear and Greed Index has stepped out of a record low of 5 to 41 at the time of writing.

This means that investors are out of Extreme Fear territory now, and dipping their toes into Neutral for the first time in one and a half months.

Ethereum Could Rise by 22% After Confirmed Breakout

The daily chart shows how relevant this key breakout above the $2,150 area is, as it means ETH has stepped out of its consolidation pattern.

The 200-day exponential moving average (EMA) seems like the most likely target if this is a serious relief rally. This would be part of a normal reversion to the mean behavior, and creates room for a 23% potential gain ahead.

The Relative Strength Index (RSI) has surged to 64 in the past day, meaning that positive momentum has accelerated. This is also a buy signal and, paired with a key level breakout, raises the odds of a strong move to higher ground.

Promising Buy Signal Flashes After ETH Breakout

Heading to the 4-hour chart, this is exactly the kind of scenario we want when we use our signals system.

A buy signal has shown up in this lower time frame right after a key level breakout. These are “decisional” candles that confirm institutional or whale-level buying activity, as volumes exceeded the average.

What we would expect right now is a retest of the $2,180 area for an ideal entry. At that point, if we expect that ETH will hit our mid-term target of $2,800, this trade would offer a 4.5x risk-reward ratio.

The RSI in this time frame is already quite stretched out and has entered overbought territory at 79. We expect a pullback at this point, but not necessarily without first seeing ETH exploding to higher levels like $2,400.

Hence, some patience is required to wait for the best entry to capitalize on this move. All indicators are turning bullish, and even though this might not imply that the market will fully recover to all-time highs, it does create opportunity for bulls in a heavily “shorted” market.