Ethereum approaches crucial level: ETH finally breaks through $2,100?

The crypto market has shown a cautious recovery over the past 24 hours. Both Bitcoin (BTC) and Ethereum (ETH) are in the green by about three percent. For Ethereum, this increase comes at an interesting time, as the price is once again approaching an important resistance level.

According to Newsbit analyst Erik Juffermans, there is therefore reason for cautious optimism, but a clear breakthrough remains crucial.

Cautious reason for optimism

Since the beginning of February, the Ethereum price has been moving in a channel between approximately $1,800 and $2,100. The top end of that range in particular appears to be persistent. The zone around $2,100 has already been tested four times and each time served as strong resistance.

Now ETH is back at that level.

However, according to Juffermans, investors should still remain cautious. As long as the price does not convincingly break above $2,100, he says, we cannot draw any firm conclusions about a new upward trend.

At the same time, the structure on the graph looks increasingly stronger. Since bottoming around $1,800, ETH is making higher lows and slowly building momentum towards resistance. This may indicate that the selling pressure is slowly decreasing.

Should the positive momentum within the market continue for a few more days, Juffermans believes this could be exactly the catalyst needed to finally break the zone around $2,100.

In that scenario, technically speaking, a relatively large amount of room is created upwards. There is little strong resistance between $2,100 and $2,700. However, the psychological limit around $2,500 may temporarily cause some pressure.

ETH vs Bitcoin

Finally, it is interesting to look at the ETH/BTC chart. This ratio shows how Ethereum is performing compared to Bitcoin.

This is an important indicator for investors. Those who invest in Ethereum often do so with the expectation that ETH will perform stronger than BTC.

However, at the moment that graph does not show any major change. Ethereum has been in a downward trend compared to Bitcoin since late 2021.

According to Juffermans, we therefore have to wait for a clear breakthrough of the declining trend line that has been acting as resistance for years. If that line eventually breaks, Ethereum could enter a new growth phase in which it will once again outperform Bitcoin, according to the analyst.

Until then, Bitcoin will remain the dominant force in the market for the time being.