Ethereum (ETH), the leading altcoin, has recently showcased a bullish uptrend, crossing the significant resistance mark. In the last 24 hours, ETH has managed a noteworthy rally, now climbing over 6% to a trading price of $3,317.26. This rally brings Ethereum to a notable juncture as it approaches a crucial horizontal resistance level. Despite facing headwinds from ongoing legal battles with the SEC, Ethereum has shown resilience, with its market capitalization increasing by 6.48% to reach $404,811,808,850.

The current market sentiment for Ethereum is cautiously bullish as it continues to outperform its pairings, notably the ETH/BTC ratio, which has seen a nearly 13% increase over the last two weeks. This growth occurs even as Ethereum remains 15% below its 2024 peak against Bitcoin. With a significant trading volume of $12,132,431,248 over the past day, Ethereum is demonstrating strong market activity, which has been reflected in its rise in price.

ETH Overcomes Key Resistance of $3,200

The ascent to the $3,320 level has been marked by a determined push past the $3,300 resistance that Ethereum had previously struggled to overcome. This resistance was tested on April 24 but led to a notable correction. Now, having surpassed this level, Ethereum is at a pivotal point. If it maintains above this threshold, it could signal further upward momentum, potentially aiming for higher price targets.

On the 4-hour chart, ETH's surge has been accompanied by increased trading volumes, signaling robust market participation. This momentum has propelled ETH past its Exponential Moving Averages (EMA) for the 20, 50, 100, and 200 periods, which are currently situated at $3,257.75, $3,487.40, $3,479.84, and $3,452.62, respectively. Breaking above these averages is a significant bullish indicator, suggesting that ETH's short-term trend has reversed its previous bearish bias.

The price trajectory of Ethereum has set a clear upward path, with the asset currently hovering above the 4-hour EMA levels. The Average Directional Index (ADX), sitting at 20.32, is beginning to indicate a strengthening trend, although it remains to be seen if this will translate into a sustained upward drive. The Awesome Oscillator (AO) reflects a substantial green bar, reinforcing the positive momentum behind ETH's recent price increase.

Can ETH Overcome Key Resistance of $3,400?

Ethereum's current price is inching close to the next significant resistance level. If it maintains its upward course, we might see it target the $3,400 mark, which was previously a tough barrier. On the downside, support levels have formed at approximately $3,199.73 and $3,177.68, which might serve as safety nets should any retracement occur.

The backdrop of Ethereum's price movement is framed by Consensys' legal response to the SEC's Wells notice and the potential lawsuit from Grayscale over the SEC's reluctance to approve spot Ethereum ETFs. These events contribute to a complex landscape that Ethereum navigates. Despite this, the price of Ethereum has seen a recovery, signaling robustness in market confidence. The possibility of the SEC approving spot Ethereum ETFs, albeit slim, hangs over the market, suggesting a further bullish scenario could unfold if such approval is granted.