Ethereum is trading at its highest levels since late July, hovering around $3,470. This represents a significant rebound for the second-largest cryptocurrency, which managed to hold above the crucial 200-day moving average (MA) at $2,965. By holding this level, Ethereum confirmed its bullish price structure, paving the way for continued momentum as it approaches the next milestone – yearly highs near $4,000.
Senior analyst and investor, Karl Roenfeldt, recently shared his technical analysis on X, noting that Ethereum’s price action has built a solid foundation for further growth. According to Runefelt, Ethereum is poised for a major rally once it breaks above key resistance levels, indicating increased confidence among traders and investors.
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This bullish sentiment is further reinforced by Ethereum’s ongoing on-chain activity and growing institutional interest, which continues to support its upward trajectory. However, crossing the $4,000 mark will require Ethereum to overcome areas of resistance that have historically led to pullbacks.
As ETH consolidates gains, market participants are closely monitoring signs of the next breakout, which could set the trend for the rest of the year. Ethereum’s recent strength underscores its role as a market leader and trendsetter in broader cryptocurrency trends.
Ethereum Critical Supply Test
Ethereum is testing an important supply zone just below the $3,500 level, a key resistance that could push the cryptocurrency to yearly highs in the coming days. This level has become a focal point for traders and investors, as breaking it would likely indicate an upward continuation of Ethereum’s recent momentum.
Senior Analyst Carl Rohnfeldt recently shared his thoughts on XEmphasizing the importance of this resistance. According to his technical analysis, once Ethereum breaks the $3,500 barrier, it could quickly rise to $3,700, possibly within hours. The market sentiment surrounding Ethereum remains optimistic, with rising demand a catalyst for further price gains.
Ethereum’s strength at this critical level is also reigniting speculation about a possible Altseason. If ETH continues its upward trajectory and attracts more capital, it could pave the way for other altcoins to follow suit. Historically, Ethereum price action has been a leading indicator of broader market movements, and this time looks no different.
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As ETH approaches this pivotal moment, all eyes are on its ability to maintain bullish momentum. A strong rise above $3,500 would confirm the bullish structure and pave the way for Ethereum to dominate market narratives in the coming weeks.
Key levels to watch
Ethereum is trading at $3,470, hovering below the crucial $3,500 resistance level. This local rally has become a major area of focus for traders and analysts, as a break above it could pave the way for a significant rally. If Ethereum can forcefully clear this resistance, it could lead to a breakout that pushes the price towards $3,900 within days.
However, the market remains cautious about the potential risks associated with this pivotal moment. A failed breakout at $3,500 could lead to sideways consolidation as Ethereum seeks stronger buying pressure to resume its bullish momentum. In the most bearish scenario, a significant correction could occur, pushing ETH back to lower levels to create a more solid support base.
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The current price action highlights the importance of this resistance area. A clear break above $3,500 is likely to confirm Ethereum’s bullish structure and boost confidence in the ongoing uptrend.
On the other hand, any hesitation or rejection at this level may indicate the need for further consolidation before the next major move. As ETH approaches this critical juncture, the market is watching closely to determine its next direction and the potential ramifications on the broader cryptocurrency landscape.
Featured image by Dall-E, chart from TradingView
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