Will Ethereum (ETH) Hold the $3K Line or Drop Below?

• Ethereum trades at $3.1K, reflecting a 2.30% loss over the last day.
• The market witnessed a liquidation of $90.57 million in Ethereum.

The cryptocurrency market shook off the bearish pressure and surged to a $2.73 trillion market cap. Bitcoin (BTC), the largest asset, leads the charge, hitting its all-time high at $81.8K. Notably, Ethereum (ETH) has overcome the $3K mark, a crucial resistance that has held firm for the past few weeks.

The price explosion of both assets might bring in bullish sentiment in the crypto market. As per analysts’ findings, Ethereum’s bullish movement could lead to a remarkable rally. And this breakout could fuel the upcoming altcoin season. 

Apart from the overall bullish signals, the largest altcoin has lost 2.30% over the past 24 hours. However, due to the bearish price action, ETH chose a downside rally for the day. At press time, Ethereum is trading at $3,139.

Throughout the day, the asset has dipped to a low of $3,073 and surged to a high of $3,249. It’s significant to point out that the market observed a liquidation of $90.57 million worth of Ethereum during this timeframe. In the meantime, the daily trading volume of ETH stays at 44.99 billion. 

A Genesis-related wallet, inactive for nearly 3 years, has transferred 1,550 ETH worth $5 million to Coinbase. The wallet has received 6,292 ETH back on July 30, 2015. Notably, the whale transaction data reveals a surge in activity from key stakeholders. That triggered Ethereum to reach a 14-week high. Additionally, ETH transaction volume has spiked, reaching $10.4B in recent days, signaling increased market participation.

How Will ETH Move Next?

The technical indicators of the ETH/USDT trading pair exposed a brief negative sentiment as the Moving Average Convergence Divergence (MACD) line settled below the signal line. This indicates the arrival of a negative trend in the market.

Besides, the Chaikin Money Flow (CMF) indicator is found at 0.20, suggesting a strong market signal highlighting demand and hinting at the probability of an upside rally. Meanwhile, Ethereum’s daily trading volume has soared by over 36.51%. 

Ethereum’s four-hour price chart signals a fresh rally at $3.1K. Maintaining bullish momentum is the key to ETH’s higher climb. The asset’s bullish pace could trigger it to hit $3.5K and climb beyond if the ETH price tests the key resistance at $3,387. 

On the contrary, if Ethereum couldn’t stretch out to the upside, it might likely ignite a downside correction. The major support can be traced at the $2.9K level. Moreover, a steady decline might drive the ETH price toward the $2.7K mark, returning it to its prior trading range. 

The ongoing market sentiment of ETH is likely to approach the overbought zone, as the daily relative strength index (RSI) is positioned at 66.92. Particularly, the daily frame of Ethereum exhibits the short-term 50-day moving average above the long-term 200-day moving average.