Ethereum Breaks Long-Term Resistance Against USD and Bitcoin, Analysts See Path to $3,500
Key Takeaways
- •Ethereum has moved above a descending resistance line that had governed its daily price trend for approximately one year.
- •The $1,850–$1,900 breakout zone must serve as support for ETH to potentially recover toward $2,350, $2,950, and eventually the $3,350–$3,500 resistance area.
- •The ETH/BTC pair has broken above an 11-month descending trendline, indicating Ethereum may be entering a phase of stronger relative performance against Bitcoin.
- •A daily close back below the broken USD trendline would risk a decline toward the $1,700–$1,550 range, while a weekly ETH/BTC close below 0.028 BTC would weaken the relative-strength setup.
- •The $3,500 price target remains conditional and distant, dependent on Ethereum sustaining its current breakout levels over multiple intermediate resistance zones.
Ethereum is breaking through long-term resistance levels against both the U.S. dollar and Bitcoin. If the cryptocurrency can maintain these breakout levels, analysts suggest it could open a path toward $3,500 while improving ETH's prospects of outperforming BTC.
The setup is notable because ETH is being measured on two fronts: its dollar price, which reflects broader market demand, and the ETH/BTC pair, which shows whether Ethereum is gaining or losing ground relative to Bitcoin.
Ethereum Breakout Opens Path Toward $3,500
Ethereum has moved above a descending resistance line that governed its daily trend for nearly a year. Analyst Crypto Patel noted that the breakout shifts momentum in favor of buyers, provided ETH continues to hold above the former trendline.
The breakout zone around $1,850–$1,900 now needs to serve as support. Sustaining that level could pave the way for a recovery toward $2,350 and $2,950 before Ethereum tests the larger $3,350–$3,500 resistance zone.
However, $3,500 remains a distant and conditional target. A daily close back below the broken trendline would undermine the breakout and raise the risk of another decline toward the $1,700–$1,550 range.
ETH/BTC Breaks Its 11-Month Downtrend
Ethereum has also broken above an 11-month descending trendline against Bitcoin, according to analyst Ted. The move indicates ETH may be entering a phase of stronger relative performance following an extended period of weakness.
The ETH/BTC pair now needs to hold above the broken trendline and reclaim 0.03 BTC to confirm the breakout. Continued strength could bring the 0.032 BTC and 0.034 BTC resistance levels into focus.
For traders watching crypto market rotation, ETH/BTC is a key relative-strength gauge because it filters out part of the broader dollar-denominated market move and focuses on whether capital is favoring Ethereum over Bitcoin.
Conversely, a weekly close back below 0.028 BTC would weaken the setup. A deeper decline toward 0.026 BTC would suggest the broader ETH/BTC downtrend remains active.
Source: Coinpaper