There is uncertainty about whether ETH can break through $2800, here is a specific analysis:
Factors supporting the breakthrough
- Technical indicators and market sentiment: From a technical analysis perspective, there is a key resistance level for ETH around $2800, but there have also been recent bullish divergence signals, where prices are falling but buying pressure is increasing, which usually indicates enhanced buying momentum that could push prices through resistance. Furthermore, the accumulation behavior of large investors, such as whales, also shows confidence in ETH's long-term performance, bringing some positive expectations to the market.
- Ecological development and market confidence: Ethereum's network continues to grow, with new second-layer solutions emerging, and BlackRock's support has enhanced confidence in the platform. Meanwhile, Ethereum's total locked value (TVL) has reached a three-year high, indicating increased activity and attractiveness of its ecosystem, providing potential support for ETH's price.
- Potential ETF approval: The potential approval of a spot Ethereum ETF is considered one of the key factors driving ETH's price breakthrough. If the ETF passes smoothly and addresses the staking yield issue, it may attract institutional funds, thereby driving ETH prices into a new bull market.
Factors hindering the breakthrough
- Market hesitation and profit-taking risks: The price movement of ETH around $2800 shows market hesitation, with bulls failing to break through this resistance level on volume. Additionally, if ETH cannot fully break through the resistance, profit-taking may intensify, leading to a price correction.
- Competition and pressure for technological upgrades: Ethereum faces competition from other emerging public chains, such as Solana, and the rise of these competing networks may divert market attention and capital away from ETH. At the same time, if Ethereum's technological upgrades lag behind ecological demands, it could also affect its market competitiveness and price performance.
- Futures market and trader sentiment: The ETH futures market currently shows that the optimism of professional traders is at a monthly low, and the ratio of long to short positions has also declined, indicating that there are concerns about the short-term trend of ETH.
