Ethereum Needs to Break Key Resistance Level for Bull Rally, Analyst Says
A highly regarded crypto analyst has highlighted the importance of Ethereum (ETH) breaking through a key resistance level in order to spark a bull rally in the market.
Rekt Capital, a prominent crypto trader, took to social media platform X to share insights with his vast following of 549,100 individuals. According to Rekt Capital, Ethereum must reclaim the $2,500 area as support before it can make a significant move to the upside.
“After holding the orange circled area for about six full weeks, Ethereum ended up following through on the blue circled scenario. Still, this orange box is the macro range low ($2,200), and price needs to effectively reclaim around $2,500 to rally across the range.”
Rekt Capital also pointed out that until Ethereum successfully closes above $2,500 on the daily chart, it is likely to find support at $2,200 while trading sideways.
“For the time being, Ethereum is treating the ~$2,500 level as resistance after it previously held for almost six weeks. But Ethereum just needs a daily close above ~$2,500 to start the reclaim process. Until then, ETH will meander between $2,200-$2,500.”
As of the time of writing, ETH is trading at $2,425, showing no significant movement for the day.
Switching focus to Bitcoin (BTC), Rekt Capital also highlighted bullish signs on the daily timeframe. Bitcoin has managed to break through a downtrend line for the second time in June, indicating positive momentum in the market.
“Bitcoin has broken two two-week downtrends over the past month.”
Bitcoin is currently trading at $107,302, showing stability in its price movement for the day.
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