Ethereum Surges Before Taking a Hit: What's Next?

By: Isha Das

Ethereum experienced a high volatility period recently as it spiked to $3,800, a level not seen since December 2021, due to mounting anticipation for its Dencun upgrade before experiencing a major drop. After reaching a new multi-month high, a strong bearish reaction was witnessed from the $3,827 high, causing a crash over $500. In the midst of this, the prices followed Bitcoin closely, with BTC achieving a new all-time high above $69,000.

After the price crash, Ethereum found support near the $3,350 zone. The price showed signs of recovering as it cleared key bullish trend lines with support also seen around the $3,620 mark. At this time, Ethereum is trading near the $3,500 mark, showing potential for further recovery.

Looking ahead, if Ethereum manages to clear the $3,600 resistance zone, it could likely resume its rally, potentially even retesting its recent highs. Conversely, if the resistance level proves too strong, another downside correction could be poised, with key support available near the $3,400 and $3,340 zones.