Ethereum has experienced a significant price surge after US President Donald Trump announced a U.S. Crypto Strategic Reserve, which includes Ethereum. The announcement triggered a strong reaction across the crypto market, with ETH reclaiming key levels and fueling optimism among investors.
In a recent analysis on X, top analyst Daan explained that ETH swept all liquidity below $2,100 before bouncing sharply from that point. According to Daan, this move was significant as Ethereum absorbed sell-side liquidity and now continues its bullish momentum following Trump’s announcement.
However, the market remains volatile, and bulls must sustain momentum to confirm a full recovery. If Ethereum holds above $2,500, a further move higher is likely. Investors are closely watching key resistance levels to see if the rally can continue.
Ethereum has been facing relentless selling pressure since late December, with its price plummeting nearly 49%. However, yesterday’s rebound has sparked renewed optimism among traders who anticipate a fast and aggressive recovery. The sudden surge from $2,200 to $2,500 caught many by surprise, especially after the market-wide downturn that saw ETH dip as low as $2,080 on Friday.
Daan’s technical analysis highlights that ETH is currently in a neutral zone, with the $2,800 level remaining important if revisited later. If ETH pushes toward the $2,800 mark and holds above it, bullish momentum could accelerate. However, if the price struggles to sustain its gains, another round of selling pressure could emerge.
The market will be closely watching Ethereum’s ability to break through resistance and confirm a new uptrend. A strong rally is possible if ETH can reclaim the $2,500 mark and hold above it in the coming days. Breaking past this resistance would open the door for a push toward the $2,800 level, which analysts see as a key price target.
However, failure to break above $2,500 could leave ETH vulnerable to further downside, especially if bearish sentiment continues to dominate the market. Investors remain cautiously optimistic, watching for signs of either a breakout or another leg down.
Source: https://bitcoinist.com/ethereum-sweeps-all-the-liquidity-below-2-1k-time-for-a-comeback