$2,500 retest for Ethereum as SpaceX rally boosts tech stocks

$2,490: Ethereum price today

• $2,500 was briefly regained by Ethereum on Wednesday. The advance set off a fresh round of liquidations, led by short positions.
• Following SpaceX's reported 161% YoY revenue growth, renewed appetite for risk in technology shares has supported the recovery.
• Holding above the 20-day and 50-day EMAs could allow ETH to break through resistance at $2,548.

$2,500 was briefly surpassed by Ethereum (ETH) on Wednesday. It was the first move above that level in over a week, as a return of risk appetite in technology shares extended into the crypto market.

ETH advances with equity indices

Over the past 24 hours, the advance prompted $53.7 million in ETH futures liquidations, according to Coinglass. Short positions made up $43 million of the total, leaving shorts as the largest share of liquidations for a third consecutive day.

Stronger risk appetite in equities preceded the rally. The technology-heavy NASDAQ advanced 1.3%, while the S&P 500 added 0.7%.

A 10% jump in Elon Musk's SpaceX shares accounted for much of the gains, following the company's report of 161% YoY revenue growth in the third quarter. According to CNBC, Musk said SpaceX and his carmaker Tesla have established special committees to discuss a merger.

The parallel gains in ETH, other major cryptocurrencies and equity indices extend the strengthening correlation between the two asset classes over the past week. Last week, cryptocurrencies fell with technology shares as concerns over AI-related spending triggered selling in leading semiconductor stocks across the US, Korea and Taiwan markets.

A lasting crypto recovery is expected by trading firm Wintermute if more technology and AI-related companies report stronger Q3 earnings.

ETF investors, however, remain unconvinced by ETH's modest rebound over the past two days. According to SoSoValue, US spot ETH exchange-traded funds (ETFs) posted net outflows of $26.13 million on Tuesday. This took the number of negative readings to 15 over the last 16 trading days.

On-chain data offered a brighter signal. Bitwise reported that Ethereum staking reached a record 43.8 million ETH, equivalent to 35.9% of total supply.

$2,548 resistance in focus: Ethereum technical outlook above short-term EMAs

A test of resistance at $2,548 could follow as Ethereum appears poised to close the day above its 20-day and 50-day Exponential Moving Averages (EMAs). These stand at $2,501 and $2,483, respectively.

Sustaining the rebound above those short-term EMAs and breaking $2,548 would bring ETH up against the $2,636 barrier. Beyond that lies a retest of resistance at $2,781.

Support remains below $2,400, where the 100-day EMA and the horizontal level at $2,355 have provided a foothold for bulls over the past week. Breaking beneath these levels could send ETH towards support at $2,204, followed by $1,971 if selling continues.

A sideways-to-higher bias, with room for further gains, is indicated by the 14-day Relative Strength Index (RSI) at around 50 and the Stochastic near 72. The latter, however, is nearing overbought territory.