Currently, ETH is moving strongly above the psychological level of $3,000 and heading towards an important resistance around $3,500. To determine whether ETH will break out at 3.5K, we need to look at several technical factors and market sentiment:
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🔍 Temporary Analysis:
1. Strong Resistance at $3,500
This level is historical resistance (previously a local peak).
Many traders will take profits here, so selling pressure is high.
2. Volume & Momentum
If buying volume continues to increase (especially from whales), the potential for a breakout is significant.
Indicators like RSI and MACD are also important. If RSI is not overbought yet, there is still room to rise.
3. Market Sentiment
ETH follows the trend of BTC. If BTC breaks through major resistance (e.g., $70K+), ETH could be pushed along.
The potential approval of ETH Spot ETF (if not already approved) could be a major catalyst.
4. Ethereum Network Activity
Gas fees, DeFi activity, and NFTs can drive ETH fundamentals.
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🔮 Probability of Breakout?
Breakout potential: 65–75% (if macro and crypto conditions remain positive).
However, the probability of a temporary rejection at $3,500 is also high before continuing to $3,800–$4,000.
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📌 Strategy:
Breakout trader: wait for a daily close candle above $3,500 with high volume.
DCA / swing: accumulate before breakout, but still set a stop loss.
Set alerts at $3,480–$3,520 for quick monitoring.
