Ethereum Poised for Important Rally Above $3,340
ethereum is currently trading above its crucial 200-week moving average, signaling a strong upward trend.This follows a breakout from a key support zone, with rising volume and a solid price structure. A move toward $3,340 seems increasingly likely.
The current market setup aligns with Market Auction Theory. This theory explains how prices rotate between undervalued and overvalued zones. For Ethereum, the undervalued zone was between $1,400 and $1,600. After testing this area, Ethereum surged, reclaiming control and surpassing the 200-week moving average.
Here are the key technical points:
- 200-Week Moving Average as Support: Ethereum is holding above this critical level,showing strength.
- $2,800 as High-timeframe Resistance: Breaking this level will pave the way to $3,340.
- Market Auction Theory in Action: price has moved from the undervalued zone to the point of control and now aims for the overvalued zone.
The 200-week moving average is a significant level where institutional investors often react. Ethereum’s ability to stay above it suggests a strong, accelerating trend. As it consolidates above this level, it sets the stage for further gains.
Once Ethereum convincingly breaks $2,800, the next target is $3,340. This woudl complete the market auction rotation, as described by Market Auction Theory. The ongoing increase in volume supports this setup, indicating strong buying interest.
As long as Ethereum holds above the 200-week moving average and breaks $2,800 with strong volume, the path to $3,340 remains valid. A full market auction rotation appears highly probable in the short to mid-term.
