Is a Bullish Breakout to $3,550 Resistance Looming?

Key Insights:

• Ethereum faces key resistance at $3,550 for a potential bullish move.
• Ethereum’s recent price action shows potential for a move to $3,200-$3,400 if it holds.
• Increased exchange outflows suggest growing bullish sentiment for Ethereum’s long-term potential.

Ethereum has been experiencing a sideways movement since November 21, with its price unable to break above the upper boundary of its corrective trend channel. Traders and analysts are now focused on whether Ethereum will manage to break through key resistance levels or continue its consolidation.

Ethereum Price Action and Market Sentiment

Ethereum is currently trading below the key resistance level of $3,550, which has acted as a major barrier for a bullish move. Despite this, Ethereum’s recent performance shows signs of an upward move. Ethereum’s price has recently broken above the $3,000 mark, with the daily close above this level being crucial for the next potential move. According to TedPillows, a daily close above $3,000 could push Ethereum towards the $3,200-$3,400 and above.

While this move is significant, a failure to maintain above the $3,000 level could reverse the recent gains. The market structure continues to favor consolidation, with the possibility of further downside movement if the breakout does not happen soon.

A Potential Breakout and Resistance Levels

However, for Ethereum to demonstrate a sustained bullish trend, it would need to break above the key resistance levels around $3,550. The overall trend will likely depend on how Ethereum handles the resistance level and whether the current sideways movement shifts into a stronger bullish trend. Based on More Crypto Online, “Until that happens, the probability of another low remains elevated,” noted analysts.

However, even if the price manages to break above the $3,550 resistance, it might still represent a smaller corrective move within a larger structure. The market is waiting for a clear breakout structure to confirm whether Ethereum can continue its upward momentum.

Ethereum’s Exchange Outflows and Price Action

Another key factor contributing to Ethereum’s potential breakout is its recent movement out of exchanges. From the point of view of Crypto Rover, the cryptocurrency is leaving exchanges at a rapid pace, signaling potential long-term holding by investors. 

This trend could indicate growing bullish sentiment as traders prefer to store their assets off exchanges, reducing the available supply in the market. At the time of writing, Ethereum is trading at $3,007, showing a 2.28% increase in the last 24 hours. The 24-hour trading volume is $18.3 billion, suggesting active market participation.