A bullish breakout from $2750 resistance could renew bullish momentum and drive a rally past $3500.
Ethereum price shows a slight uptick of 1.26% to $2654 during the Friday trading session. The ease from the mid-week sell-off has bolstered Bitcoin's price to regain $60000 while igniting a fresh relief rally in the altcoin market. The rising ETH price is heading to $2750 resistance, a pivotal zone that could bolster new recovery to continue the prevailing correction.
According to blockchain data by Arkham Intelligence, a Gnosis Safe Proxy address associated with Metalpha has recently transferred a substantial 10,000 ETH to Binance, valued at $26.02 million.
Amid the transaction, the Ethereum price held steady above $2600, while the market cap recorded at $315.5 Billion.
Metalpla, an asset management company affiliated with Bitmain, the largest Bitcoin mining company, had earlier applied to Lido to redeem 10,000 ETH. This transaction underscores Metalpha's active role in managing substantial cryptocurrency assets, possibly in preparation for strategic financial maneuvers within the market.
In the past two weeks, the crypto market witnessed a relief rally concerning the aggressive correction in July. The bullish turnaround uplifted the Ethereum price from $2111 to $2620, registering a growth of 24%.
The rising price will likely challenge the downsloping trendline at $2750, which previously acted as major support amid market consolidation. From March to early August, the Ethereum price prediction showcased a sideways action resonating between two parallel trends of rectangle patterns.
The lateral trend at a notable high indicates the distribution phase -- the stage in the market cycle where large investors gradually sell off their positions to retail traders.
Thus, the ETH price retest of the $2750-$2775 region could recuperate the selling pressure and prolong the market downfall. A recent death crossover among 50-and-200-day EMA backs the bearish outlook.
The potential will plunge the asset 19% down to hit $2127, while further breakdown could retest $1900 support.
On the contrary note, Ethereum has bounced 61.8% Fibonacci retracement level, which is often considered a healthy correction for buyers to regain bullish momentum. Moreover, the ADX indicator at 39% high accentuates the sellers led an overhead extended rally, often attracting dip buyers in the market.
Therefore, a potential breakout from the overhead resistance will secure strong support and weaken the bearish thesis. The post-breakout rally could drive the asset over 20% to target $3400.