Can Ethereum Price Break the $2,380 Resistance for a Major Bull Rally?

Key Insights:ETH faces critical resistance at $2,380, a key level for a potential breakout.World Liberty Financial bought 1,587 ETH for $3.5M, signaling renewed institutional demand.ETH futures open interest hit $26.31B, with $283M liquidated, mainly short positions.Ethereum (ETH) price pulled off a stunning turnaround, surging over 20% within the past 24 hours and recovering the $2,300 mark. However, a vital resistance at $2,380 is now a major barrier for the top altcoin, which could decide the direction of its next big move.Ethereum Price Faces Critical Resistance at $2,380Ethereum’s recent price action reflected a powerful rebound from recent lows, but there is still a strong resistance level to clear at the $2,380 level. This price zone has historically been vital as a supply barrier driving a string of failed breakout attempts.From the latest chart by analyst Ali Charts, ETH has failed to break this region before, as it has received strong resistance each time it attempts to push out of a range.Ethereum Price Source: XIn addition, a breakout above this level could initiate a significant rally, which may force ETH to the $3,000-$3,500 range seen at the beginning of 2024. However, without persistent buying pressure, a rejection here can set off a pullback, which could also test lower support levels between $1,900 and $2,000.World Liberty Financial Adds 1,587 Ethereum in $3.5M PurchaseMeanwhile, institutional demand for Ethereum is growing despite recent market volatility. World Liberty Financial, a DeFi initiative associated with U.S. President Donald Trump, recently acquired 1,587 ETH, worth about $3.5 million.Based on data from Arkham Intelligence, the purchase completes a series of strategic acquisitions made by the project that has been collecting Ethereum for the past couple of months.Consequently, this is consistent with World Liberty Financial’s overall strategy of establishing a meaningful presence in Ethereum, indicating continued conviction that the asset has a long-term future. The purchase is on the back of the rebound in Ethereum price from a multi-month slide.Subsequently, many institutional investors may view this as a good opportunity to stock up on ETH at relatively low prices.Lookonchain, an on-chain tracker, reported that Abraxas Capital transferred 49,644 ETH to its wallet, equivalent to roughly $92 million, from major exchanges, Binance and Kraken, in the last 24 hours. This withdrawal is part of a bigger strategy, as over the past two days, the firm has withdrawn a total of 61,401 ETH, worth $116.3 million.The withdrawals are in sync with Ethereum price rally over the $2,300 mark and signal increased institutional interest in the world’s second-largest cryptocurrency.ETH Exchange Withdrawal Source: XETH Futures Open Interest Hits $26.31B Amid Major LiquidationsThe recent ETH price surge has also impacted the futures market, where open interest has reached $26.31 billion, reflecting increased trading activity. According to Coinglass data, in the last 24 hours, $283 million worth of ETH futures positions were liquidated, with most being short liquidations.Notably, this indicates that intraday traders were caught off guard as prices turned sharply around, which was then followed by a string of forced liquidations as ETH broke through critical resistance levels. The increase in open interest and liquidations shows increased volatility, a characteristic of the early stages of a big price move.Supporting the bullish sentiment, a recent analysis pointed out that the Ethereum network witnessed a sharp rise in whale accumulation, with large wallet transfers signifying long-term confidence.One notable transaction is that 1,402 ETH worth $2.56 million left Binance, which indicates less selling pressure. This trend, combined with the recent Pectra upgrade increasing technical capacity and stablecoin growth, is an indication of a base for a possible long-term price surge.DisclaimerThis article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.Ronny MugendiThe post Can Ethereum Price Break the $2,380 Resistance for a Major Bull Rally? appeared first on The Market Periodical.