Ethereum has been facing challenges at the $3000 boundary since the start of the month. Recently, the cryptocurrency appeared to make a serious attempt to rise again. Will a breakout happen soon, or will Ethereum decline?

As of the latest recording, Ethereum is trading at $2714.79, showing a slight increase of 1.20% over the last 24 hours, according to CoinMarketCap. With a market cap of $326 billion, Ethereum remains the second-largest cryptocurrency at present. To maintain this position in the long term, ETH must soon prove its strength.

Ethereum Price Ready for Movement

After a market downturn on February 1, Ethereum dropped sharply from around $3100 to $2400. Since then, ETH has fluctuated between $2855 and $2553, with peaks and troughs drawing nearer each time, forming a triangle pattern in the price. Ethereum will soon break this triangle, either upward or downward.

Ethereum Price Chart Ethereum price chart, source: TradingView

If Ethereum price drops below the upward trend line, it may lose support at the $2651 level and potentially fall toward the next support at $2614, moving towards the critical support level of $2553.

However, recent hours have shown a slight rise, potentially maintaining momentum. If this continues, Ethereum might break the downward trend line. In that case, it’s crucial for Ethereum to gain enough upward momentum to break the resistance level at $2791 and then aim for $2855. This could uplift the sentiment enough for Ethereum to finally breach the $3000 mark.

What Do the Indicators Say?

As depicted in the above graph, the Relative Strength Index (RSI) for Ethereum is currently nearing bullish levels at 68. An RSI of 70 indicates buyers are in control as the cryptocurrency enters an overbought region. Thus, short-term projections suggest a potential increase in Ethereum’s price.

On the flip side, we observe the Directional Movement Index (DMI) for Ethereum. The blue line (+DI) has been on the rise in the past day, while the orange line (-DI) has decreased. This suggests that Ethereum is currently more bullish. The upward trend is firm, with the ADX reaching above 25 at 27.

Ethereum DMI Chart Ethereum DMI, source: TradingView

The ADX, which indicates trend strength, has been relatively low in recent times. However, there seems to be renewed movement in the Ethereum price, and this movement appears promising.

Why is Ethereum Rising Today?

The recent price increase may be linked to a recent post by Ethereum co-founder Vitalik Buterin, where he shared his ideas about resolving scaling issues on the network with a “universal light client.”

My preferred approach is an ERC similar to this, by which L2s can declare an on-chain config contract that specifies how to verify state proofs (as a piece of EVM code).

So you can write a universal L2 light client that asks for proofs over a peer-to-peer network and then… - Vitalik Buterin @VitalikButerin

According to Buterin, this could enable Ethereum to achieve higher transaction volumes while maintaining high safety across the network.

Should You Buy Ethereum Now or Look for Alternatives?

While indicators suggest a potential breakout above $3000, some investors remain cautious due to Ethereum’s subpar performance over the past year. Many opt to diversify their portfolios or focus entirely on new and innovative cryptocurrencies.

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This crypto wallet, featuring its decentralized exchange, also offers its own token, the Best Wallet Token ($BEST), which provides users with very low transaction fees. Currently, the token is available in the presale for the low price of $0.024025 and has already raised over $10 million. The token can be purchased using ETH, USDT, or BNB through the official website and app of Best Wallet.