Ethereum Nears Critical $3,495 Resistance Within Bullish Wedge, Signaling Possible Major Breakout Soon

• With Bitcoin reaching new highs, Ethereum’s potential to hit $4,000 hinges on maintaining current momentum and market interest.
• Large Ethereum transactions, notably by Trump’s World Liberty Financial, suggest significant market manipulation and influence.

Following a substantial 62% drop in post-election gains, Ethereum’s recent rally has rejuvenated the spirits of HODLers. Currently, 7.57 million addresses, which purchased Ethereum at prices up to $3,367, are back in the green.

The market is buzzing with speculation about whether another 23.5 million addresses will soon see profits if Ethereum continues its upward trajectory.

Ethereum’s Coinbase Premium Index (CPI) – Source: Cryptoquant

The crypto market, boosted by a 3.22% increase in overall market capitalization, reflects a robust bullish sentiment possibly influenced by political and economic factors.

Source: Tradingview

Ethereum itself has risen over 4%, and technical indicators like the Relative Strength Index (RSI) suggest there could be more gains ahead.

Source: Tradingview

However, the ETH/BTC pair shows a downturn, and the Moving Average Convergence Divergence (MACD) indicator has turned bearish, signaling potential volatility.

Source: IntoTheBlock

Despite some investors favoring Bitcoin for potentially higher returns, significant Ethereum transactions have been noted, with large quantities being moved off exchanges into major wallets .

Notably, the Trump family’s World Liberty Financial has been actively acquiring Ethereum, which may have contributed to the recent price rally.

🚨 Trump family's WORLD LIBERTY FINANCIAL project has bought $ETH for another $15 million! Are YOU buying more? pic.twitter.com/3GddbIbmTp

— The Moon Show (@TheMoonCarl) January 19, 2025

As traders increase their positions in the futures market, leading to a 5% increase in Open Interest, the market is at a juncture where it could either continue to rise or face setbacks due to profit-taking.

Source: Coinglass

Long liquidations are on the rise, indicating that the market’s stability is still uncertain.

Ethereum Eyes Breakout: Approaching Critical Resistance with Bullish Momentum

Ethereum is on the brink of a breakout as it approaches the $3,495 resistance level within a bullish wedge pattern, signaling potential for significant upward movement.

With a recent 5.76% increase in its price over the past 24 hours to $3,397, market participants are keenly watching for Ethereum’s next move.

Source: Tradingview

Ethereum’s daily chart reveals its struggle within a descending wedge pattern, a formation often associated with bullish breakouts. Breaking through the $3,495 resistance could catalyze a rally toward much higher levels.

Market Sentiment and Taker Buy-Sell Ratio

The taker buy-sell ratio, currently at 1.003, indicates a slight selling preference among market takers, with a recent 0.96% increase suggesting a shift towards buying.

Source: Cryptoquant

This subtle change could help Ethereum overcome its immediate resistance.

Network Activity and Address Statistics

Ethereum is also experiencing a surge in network activity, with a 55.07% increase in new addresses and a 9.39% rise in active addresses over the past week. A notable 52.98% decrease in zero-balance addresses indicates strong accumulation, supporting bullish sentiment.

Source: IntoTheBlock

Furthermore, a slight decrease of 0.17% in exchange reserves of Ethereum, now standing at 19.29 million ETH, suggests a reduction in selling pressure as traders move tokens off exchanges.

Source: Cryptoquant

This trend is often a precursor to upward price movements, reinforcing the positive outlook for Ethereum.

Ethereum’s price trajectory has been erratic , with significant whale activity suggesting potential market manipulation. As Ethereum attempts to break out of this volatile cycle, the real challenge remains its ability to maintain consistent gains and truly break free from ongoing market pressures.