On Wednesday, Ethereum broke through the psychologically important $2,000 resistance level, surging more than 9 percent in the past 24 hours. Crypto analysts opine that this could just be the beginning of a bullish impulse for ETH, and more gains are yet to be realized.
Ethereum finally shoots past $2,000
Analysts are in agreement that the major catalyst behind ETH’s explosive move today is the U.S. Treasury’s announcement of doubling the size of long-term U.S. government debt buybacks, from $2 billion to $4 billion, following the rapid surge in treasury yields.
Since cryptocurrencies as an asset class tend to be extremely sensitive to liquidity expectations – especially with ETH being a greater beta play than Bitcoin – the increase in the altcoin’s price was significantly more than BTC, which surged about 5 percent in the same period.
According to data from Coinglass, more than $516 million worth of short positions on Ethereum got liquidated over the past 24 hours. Such a mammoth volume of short liquidations shows how strong the bear-bias was for ETH.
In an X post, crypto analyst Doctor Profit shared the following Ethereum weekly chart, adding that the digital asset has finally overcome a key bear market resistance zone. The analyst said that for the first time since the beginning of the current bear market, ETH has surged past the “golden line.”
The so-called golden line in the above chart is the Ethereum weekly exponential moving average. To explain, a weekly EMA tracks the average price over a chosen number of weeks while giving greater weight to recent prices, making it useful for identifying the broader trend and key support or resistance levels.
ETH could target $2,900
In a separate X post, crypto trader Michael van de Poppe remarked that he doesn’t think ETH’s current rally will stall anytime soon. Poppe that he’s looking to “buy the dips,” and as long as ETH stays above $2,000, the market can expect it to climb as high as $2,900.
Previously, Poppe has given even more optimistic predictions for ETH. On August 12, he said that ETH is preparing for a massive 60 percent rally like previous cycles. Such a move from the current price zone would catapult ETH to at least $3,200.
From the supply-side, ETH quantity is becoming increasingly scarce. On Monday, on-chain data showed that 42.25 million ETH is now staked on the staking contract.
