Ethereum price remained steady above the $3,100 mark on Monday, trading near $3,174, following a broader crypto market rally.
The world cryptocurrency market achieved a 1.29% increase in the past 24 hours, which is a continuation of a 6.09% increase in the past week. This growth is an indicator of enhancing the bullishness in digital assets.
Ethereum Outlook Amid Venezuela’s Political Turmoil
The latest surge coincides with escalating geopolitical developments. A U.S. military operation in Venezuela on January 3 led to the capture of President Nicolas Maduro. He and his wife should stand in a New York court on charges of drug-related offenses.
As an answer, the acting President of Venezuela, Delcy Rodriguez, demanded the establishment of a respectful and balanced relationship with the United States in the political transition of the country.
Market analysts are keeping a keen eye on the speculation that Venezuela holds a lot of crypto. In case the United States government confiscates and blocks the Bitcoin holdings in the country. There is a high possibility of impacting the supply in the market.
This initiative can be a bullish Ethereum catalyst, and this trend supports its existing trends.
The investors also await critical economic indicators in the U.S. economy, such as the jobs report and a potential announcement of a Federal Reserve Chair.
The price movement of Ethereum will be vital as institutional interest increases and Latin American events are played out. The fact that it was able to support the level of support during the crisis in Venezuela can become a characteristic of the short-term trends in the crypto market.
Analyst Predicts Ethereum Price Could Surge To $4,000 After Key Breakout
Crypto analyst has spotlighted the detailed Ethereum price analysis approach toward a key resistance range between $3,200 and $3,400. As seen in the chart provided, a successful breakout beyond this zone would trigger the bullish momentum. And ETH would climb to the new heights of the price range of $3,800 to $4,000.
The analysis is based on historical price action and market structure, where there are obvious levels of resistance and support.
Conversely, in case Ethereum price is rejected at this resistance band, the price can potentially start to go down again and revisit the price support area of $3,000.
Ethereum Derivatives Market Sees Major Surge in Trading Volume
The Ethereum (ETH) derivatives market has witnessed a sharp uptick in trading activity, signaling renewed investor interest.
Recent data show that the volume of ETH derivatives trading has increased massively by 52.94% to a total of 51.13 billion.
Merely, there was a slight increase of 0.96 in open interest in ETH derivatives that took the aggregate amount to 42.04 billion.
Source: CoinglassOpen interest is the amount of contracts outstanding in the market. An increasing number shows the ongoing inflow of capital and trust in the near-term price dynamics of Ethereum.
ETH Price Analysis
As of the writing, the ETH price trades near $3,178, showing slight gains during the latest four-hour session. The technical indicators indicate that the RSI has been at and above 70. This indicating that Ethereum is overbought in the short run.
In the meantime, the Chaikin Money Flow is still in positive. This indicates a stable capital flow into the asset.
Source: ETRH/USD 4-hour chart: TradingviewEther price movement indicates that a resistance is being formed towards the $3,300 mark and has been blocking upward movements in the recent past.
Source: https://coingape.com/markets/will-ethereum-price-hold-3100-level-amid-u-s-venezuela-conflict/
