Ethereum (ETH) recently gained momentum, surpassing the critical $2,050 mark and sparking speculation about a possible rally toward $2,500.
However, current market dynamics are raising concerns, particularly regarding Binance’s regulatory challenges following its recent plea deal with the US Department of Justice.
Even after a brief retest at $1,930 on November 21, the second-largest cryptocurrency demonstrated strength by breaking through the $2,000 resistance zone and maintaining support above it. ETH emerged as one of the top gainers, breaking through the $2,050 resistance level.
The bullish momentum was temporarily halted on November 23 when ETH reached $2,088, resulting in a consolidation phase. Despite a minor drop below $2,080, Ethereum is still well above $2,070 and the 100-hourly simple moving average. On the hourly chart of ETH/USD, current market conditions show a short-term contracting triangle with resistance around $2,090.
The key to Ethereum’s potential upward movement is breaking through the resistance at $2,050. This breakthrough is critical for a possible rise toward the $2,150 resistance level.
If successful, it could pave the way for further gains, with a significant level at $2,250 as a target and potentially reaching $2,500.
However, the crypto market is also influenced by external factors, and Binance, one of the major players in the crypto space, has recently faced legal challenges, which adds an element of uncertainty.
Traders and investors are paying close attention to how regulatory developments, particularly those involving major exchanges, may affect the broader cryptocurrency market, including the price trajectory of Ethereum.
