Ethereum reaches $2.5K after Trump election boost

Following Donald Trump’s victory in the 2024 U.S. presidential election, the cryptocurrency market saw a renewed wave of optimism.

Ethereum (CRYPTO:ETH) was among the beneficiaries, with its price spiking by 10% to touch the significant $2.5K resistance level.

Analysts suggest that a consistent move beyond this threshold could propel Ethereum’s bullish momentum further.

On the daily chart, ETH experienced strong buying interest around the $2.3K support level, which aligns with the middle boundary of a multi-month descending channel.

This surge in demand pushed ETH towards the 100-day moving average, positioned at the critical $2.5K resistance zone.

Historically, this area has attracted sellers, indicating it is a significant challenge for Ethereum’s price growth.

However, if buying pressure persists, a breakout could trigger a short squeeze and advance the uptrend, potentially targeting the 200-day moving average at $2.8K, coinciding with the channel’s upper boundary.

The 4-hour chart illustrates that Ethereum’s initial move from the $2.3K support zone marked the lower boundary of a descending flag pattern.

Continued buying activity brought ETH near the $2.6K-$2.8K resistance range, defined by the 0.5 to 0.618 Fibonacci retracement levels.

This zone presents a considerable supply area, potentially causing a short-term consolidation as buyers contend with seller pressure.

On-chain analysis indicates growing optimism.

According to data, futures market metrics such as open interest and funding rates have shown positive trends during the recent price increase, signaling higher participation and a generally bullish outlook.

While these metrics are not yet at critical levels, sudden spikes could lead to increased volatility and a potential risk of a long liquidation cascade, possibly resulting in a sharp price drop.

At the time of reporting, the Ethereum price was $2,708.66.