Ethereum Bulls Target $3,500 But Will ETH Break Above This Flag?

Ethereum is wavy, which is evident in the daily chart. The problem is that the path of least resistance is not yet defined at spot rates. If anything, sellers have the upper hand. This position is mostly because prices are still below $2,800. A break above this line, fanned by improving fundamental conditions, would fast-track the expansion to immediate local resistance. For now, supportive factors, outside of price action, remain weak. Accordingly, most investors are on the sidelines, closely monitoring events.

The lull of the past day shows in how prices have been performing. Coin trackers show that the average trading volume is muted, at $12.3 billion in the past day. Meanwhile, the coin is flat in the previous 24 hours. Unless there is a convincing breakout lifting ETH to a new value area above the sideways chop, engagement will remain low and unattractive for traders.

Traders are watching the following Ethereum news:

• The percentage of ETH held by centralized exchanges is at a new all-time low. Increasingly, more owners have been pulling their coins from Binance, Coinbase, and other ramps in the past few months.
• Despite the cool-off in DeFi since the last bull cycle of 2021, one analyst thinks Ethereum will be the leader in this space. This is because, he adds, the network is neutral and decentralized.

Ethereum Price Analysis

ETH/USD is down after retesting the upper limit of a key resistance level.

As long as prices remain inside the $2,700 to $2,800 zone, traders need to keep track.

A decisive, high volume close above this line, ideally above $3,000, would offer entries for buyers targeting $3,500.

In that event, traders can actively consider longs on dips.

On the lower end, Ethereum has key support at $2,500.

If bears flow back and unexpectedly push the coin below this line, ETH may slip to August 2024 lows in a bear-trend continuation.