Ethereum Breaks Through $3,400 Resistance Amidst Market Optimism and Upcoming Pectra Upgrade

Ethereum’s price has broken past its last resistance level of $3,400, currently trading at $3,406.72. This upward movement is driven by market optimism and speculations surrounding President-elect Donald Trump’s potential executive order related to cryptocurrency when he takes office.

Market Optimism and Upcoming Events

Discussions are underway for the executive order to include a directive for all federal agencies to review their crypto policies and the possibility of suspending ongoing litigation against industry giants. This has set a positive tone for the entire crypto market, which saw a 3.54% uptick in the last 24 hours.

Additionally, the SEC’s recent settlement with Abra over unregistered crypto lending products has further strengthened the market’s optimism. Trump’s crypto-friendly stance is also reinforced by the news that pro-crypto Congressman Tom Emmer was elected Vice Chair of the Digital Assets Subcommittee.

The Pectra Upgrade: A Solution to Ethereum’s Challenges

The announcement of the upcoming Pectra upgrade has also contributed to Ethereum’s price increase. The Pectra upgrade aims to upgrade the consensus layer and enhance transaction speed and efficiency while establishing the groundwork for seamless interoperability between the Layer 2 solutions and the mainnet.

This upgrade addresses some of Ethereum’s most pressing issues, including congestion and raised gas fees. The Pectra upgrade is expected to provide a solution to these challenges and pave the way for the future of blockchain expansion.

Ethereum’s Price Could Rise Further

According to the Moving Average Convergence Divergence (MACD) chart, Ethereum is providing buy signals, indicating potential upward momentum in price increases. The MACD measures changes in momentum, indicating likely price trends, while HODL Waves reflect long-term holding behavior.

Glassnode’s HODL Waves chart illustrates strong long-term holding trends in Ethereum, with a growing percentage of ETH held for over a year, indicating investor confidence and reduced short-term selling pressure.

“The holding wave, HODL, expresses strong long-term holding sentiment with a substantial supply of ETH being held for more than twelve months, showing lasting investor confidence and lessened short-term selling pressure.”

While Ethereum’s price might experience minor fluctuations as the market digests these developments, the current trends suggest that ETH is a likely candidate for a potential price uptick.

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