 ▲ Ethereum (ETH) |
Ethereum surged more than 9% in a single day after breaking through a key technical resistance level. With trading volume also rising sharply, speculation is growing that the short-term downtrend may be reversing.
According to CoinMarketCap on March 4 (local time), Ethereum (ETH) was trading at $2,150.73, up 9.24% over the past 24 hours. This outpaced Bitcoin (BTC), which gained 7.79% during the same period. Notably, 24-hour trading volume jumped 34.37% to $33.24 billion, indicating strong buying pressure.
The immediate catalyst for the rally is analyzed as a technical breakout. Ethereum simultaneously moved above the 38.2% Fibonacci retracement level at $2,146.89 and the short-term 7-day and 30-day simple moving averages. Such a breakout suggests that market momentum may be shifting from a downtrend to an uptrend and often attracts trend-following buyers.
The broader rally in risk assets has also been cited as a supporting factor. Over the past 24 hours, the total cryptocurrency market capitalization increased by 6.59%, with Bitcoin climbing near $73,000 and leading a strong market-wide uptrend. While following the broader market momentum, Ethereum outperformed Bitcoin, recording a higher percentage gain.
A key variable for the short-term outlook is whether Ethereum can maintain support at $2,146.89. This level, previously a major technical resistance during the recent rally, is likely to act as support going forward. If maintained, the price could open the way toward the next major resistance at the 23.6% Fibonacci level of $2,240.98.
Conversely, if the price falls back below $2,146, the bullish breakout signal could be invalidated. In that case, analysts suggest the market may attempt a pullback toward the 50% Fibonacci level at $2,070.85. Market participants are also closely watching whether Bitcoin can sustain its upward momentum above $73,000, as this may be a key determinant of Ethereum’s further gains.
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