FX.co ★ Sud | #Ethereum chart analysis

Ethereum (ETH) experienced a strong recovery on Friday, rising by 6% to settle above the $2,400 mark. Meanwhile, global risk assets saw a broad rebound following the U.S. midterm elections. The Democrats secured a decisive victory, winning a majority of seats in both the Senate and the House of Representatives, in addition to gubernatorial races in key states such as Texas and Nevada. President Donald Trump stated that he is fully prepared to work with the Democrats, who now hold the majority in Congress. Vice President J.D. Vance attributed this political shift directly to foreign policy disagreements, noting on social media that voter dissatisfaction with U.S. military involvement in Iran—along with persistent inflationary pressures—significantly influenced the election results. This shift in the political landscape triggered a widespread rally across stock and digital asset markets: the S&P 500 rose by 1.88%, the tech-heavy Nasdaq climbed by 2.17%, and the total market capitalization of the cryptocurrency sector increased by 3%. According to data from Coinglass, as the price of Ethereum breached the $2,400 threshold for the first time since October 23, total liquidations in the derivatives market exceeded $241 million—with over $133 million in forced liquidations of short positions occurring within a 24-hour period. Total liquidations of futures contracts across the cryptocurrency market approached $1 billion. Furthermore, Ethereum has successfully reclaimed its "realized price"—the average acquisition cost of all tokens circulating on the blockchain. Historically, this metric has often served as a key dividing line between bull and bear markets. This significant price surge highlights a notable shift in market sentiment, as traders reassess various risk assets amid the prospect of legislative gridlock in Washington and adjustments to economic priorities. From a technical perspective, having surpassed the short-term resistance level of $2,355 and successfully holding above key short- and long-term exponential moving averages (EMAs), Ethereum is currently trading at approximately $2,430. Momentum indicators continue to support further price gains, though they also reflect a relatively "tight" market: the 14-day Relative Strength Index (RSI) sits at around 55, while the Stochastic oscillator has entered the overbought zone near 85. This suggests that while bullish momentum remains strong, the upward climb could slow in the near term. Moreover, the spot price has broken through a downward trendline that had been in place since early October, paving the way for further tests of higher resistance levels. If Ethereum can maintain its position above the 50-day EMA and the key support level of $2,411, buyers are likely to challenge the primary overhead resistance target of $2,548. A decisive breakout above this resistance level would shift the technical focus toward a secondary resistance zone at $2,636, and subsequently toward a longer-term target of approximately $2,781. Conversely, should short-term profit-taking occur, initial support is found within a zone formed by the 20-day exponential moving average (EMA) at $2,359 and the $2,355 level; further down, the 100-day EMA ($2,346) provides additional support. If the pullback deepens, the 200-day EMA ($2,323) will serve as a key dynamic support level, while stronger medium-term demand-based support lies at $2,250 and $2,204.