Ethereum Breaks Key Resistance at $3,400

Ethereum (ETH) has surged past the critical $3,400 mark, reaching a new high of $3,401.77 with a 24-hour gain of nearly 7%. This breakout reflects a strong resurgence in bullish sentiment and has reignited investor interest across global markets.

Key Drivers Behind the Rally

The current rally is supported by a confluence of positive developments:

  • Noticeable increase in on-chain activity, driven by renewed engagement in DeFi and NFT ecosystems
  • Improved network efficiency following recent protocol upgrades, boosting long-term confidence
  • Fresh capital inflows on major exchanges, indicating renewed institutional positioning

Volatility Rises – Risk Management Is Crucial

While the momentum remains strong, market volatility has spiked. Technical indicators suggest potential pullback risks in the near term. Traders are advised to implement disciplined risk controls, avoid over-leverage, and consider staged entry strategies to navigate uncertain conditions.