Ethereum has made a comeback after hitting the lower side of its trading range at about $2,900. This huge demand zone for ETH had many buyers that helped it bounce back by more than 22% in less than two weeks and regain the $3,500 level. The impending launch of Ethereum spot ETFs also accelerated this recovery as investor confidence and buying momentum increased.
Ethereum bounced back from the support area at $2,900 thereby further confirming strong interest at lower prices. This optimism was observed when ETH broke through crucial resistance levels closing above its 200-day Simple Moving Average (SMA) which stood at $3,136 and continued on an upward path over Sunday evening.
Over the past few days, Ethereum’s price has been consolidating around the $3,500 resistance level which implies some kind of short-term consolidation before the next move. Market sentiment is still mildly positive as traders continue to monitor ETH for possible breakouts against these key resistance levels.
The RSI index stands at 64.04 indicating a strong bullish signal but not yet reaching overbought territory although there may be potential correction ahead in the short term. The MACD indicator points towards bullish possibilities for Ethereum as well since it shows increasing buying momentum signaled by crossing the MACD line above the signal line during uptrends.
ETH trades above its 20, 50, 100, and 200 EMAs which are placed at $3,254.7, $3,277.7, $3,308.2, and $3,386.6 correspondingly. These are moving support points that make it more likely that the market will go up than down due to their positioning and act as a cushion against possible price drops for instance by Ethereum in this case further underscored by the current price level being above these averages.
In the short run, Ethereum has resistance at $3500 levels while breaking this may open doors to further gains targeting the upper resistance area of approximately $3800. If successful in piercing through this major hurdle it would indicate a sustained upward movement thus setting new records for ETH.
On the contrary, crucial support lies at around 3,065 dollars which should not be broken if we want to avoid returning to lower support areas such as retesting those closer to about 2900 dollars where ETH had turned bearish earlier before starting its recent uptrend. However, given strong buying interest and favorable technical signals, there is less probability of a big fall below this level in the prevailing market conditions
The latest developments in Ethereum’s price action together with technical analysis suggest a bullish sentiment for ETH. The swift recovery from lows of $2,900 coupled with continued movement above key moving averages indicate improved investor confidence in Ethereum (ETH). On top of that broader market sentiment driven by the announcement of Ethereum spot ETFS and macro factors favoring gives additional support for Ethereum’s bullish outlook
ETH will be watched closely by traders and investors as it stabilizes around the $3,500 resistance level to see if it can break above this vital area. The present upward trend may persist if a successful breach is achieved. $3,800 and more are potential goals. To keep the bullish momentum going, maintaining levels of support higher than $3,065 would be important at the lower end.