Ethereum has experienced significant volatility, with a 10% surge attributed to increased market activity surrounding President Trump's inauguration. However, the asset is facing a crucial resistance at $3.5K, and the upcoming price action will determine its next trend. Ethereum has encountered buying interest near the 100-day moving average at $3.2K, bringing it closer to the critical resistance region at $3.5K. If momentum continues, Ethereum could surpass $3.5K and rally towards the $4K resistance zone. The short-term price action is crucial, as volatility remains high, and a rejection at $3.5K could lead to retracements. Market participants are considering the likelihood of a bullish breakout following the inauguration, but sustained bullish momentum and increased long positions are necessary for a decisive breakout above $3.5K. The funding rates metric will play a key role in determining Ethereum's ability to overcome this resistance level.



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