Ethereum (ETH) is gearing up for an explosive bullish phase after decisively breaking above the crucial $3,000 mark. This milestone has fueled optimism among traders and investors, signaling a potential surge to new all-time highs. ETH’s recent price action demonstrates strong momentum, suggesting that the second-largest cryptocurrency by market cap is ready to reclaim its place in the spotlight.

Renowned analyst and investor Carl Runefelt has bolstered this bullish outlook with a compelling technical analysis. Sharing his insights, Runefelt pointed out Ethereum’s impressive recovery and growing strength. He emphasized that if current momentum continues, the $6,000 milestone could be within reach sooner than many expect. 

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According to Runefelt, Ethereum’s upward trajectory is supported by increasing network activity, heightened institutional interest, and broader adoption of its smart contract capabilities.

The crypto market’s recent surge, led by Bitcoin’s new all-time highs, has created an environment ripe for Ethereum to follow suit. As traders focus on ETH’s potential to outperform other altcoins, all eyes are on whether it can sustain its breakout and push higher. The coming weeks will be crucial as Ethereum solidifies its position above $3,000, potentially paving the way for a rally that could redefine expectations for this cycle.

Ethereum Testing Supply 

Ethereum is on the brink of a significant breakout as it approaches the last major supply levels before potentially embarking on a Bitcoin-like rally. After reclaiming its local highs with strong momentum, Ethereum has captured the attention of traders and investors looking for the next big move in the crypto market. Many believe the current consolidation phase is just the calm before a bullish storm.

Runefelt recently shared a detailed technical analysis on X, highlighting Ethereum’s readiness for a massive bull run. Runefelt emphasized that ETH is mirroring Bitcoin’s recent explosive breakout, suggesting that Ethereum could be next to surge. 

According to his analysis, this may be the last opportunity to buy ETH at relatively low prices before the market takes off. Runefelt set an ambitious price target of $6,000, forecasting this level as attainable once Ethereum breaks through its final supply zones.

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Ethereum’s potential rally is supported by a combination of technical strength and increasing demand for its smart contract platform. With Bitcoin setting new all-time highs, the market’s focus is gradually shifting toward altcoins, particularly Ethereum. If ETH breaks above its current resistance, it could ignite a wave of buying pressure that sends prices soaring to unprecedented levels.

ETH Testing Technical Levels 

Ethereum is currently trading at $3,110, following a 12% retrace from its recent local highs. Despite the pullback, ETH continues to show resilience, holding firmly above the 200-day moving average (MA) at $2,955. This key demand level is a strong indicator of long-term market strength and suggests that Ethereum remains in bullish territory despite short-term volatility.

The 200-day MA serves as a critical support zone, and its defense could pave the way for a significant rally in the coming days. If ETH maintains its position above this level for an extended period, it would signal renewed bullish momentum and set the stage for a breakout to higher supply zones.

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The next major resistance level for Ethereum is at $3,450. A successful breach and consolidation above this price point would confirm a breakout, positioning ETH to challenge its all-time high (ATH). Such a move could reignite bullish sentiment and attract new buying pressure from investors anticipating further gains.

Featured image from Dall-E, chart from TradingView

Ethereum is back on an upward trajectory after finding solid footing at the $3,051 key support level, sparking hopes for continued bullish momentum. The recent rebound highlights the strength of buyers’ interest, as ETH resists bearish attempts to drive prices lower. 

As the uptrend resumes, traders are closely eyeing critical resistance zones that could shape Ethereum’s next move. Will this recovery lead to a sustained rally, or will the market face renewed selling pressure?

This analysis aims to examine Ethereum’s recovery as it resumes its uptrend after defending a critical support level. By analyzing key resistance zones and market dynamics, we seek to uncover potential scenarios for ETH’s price movement and offer insights into whether the uptrend can gain further traction or encounter renewed selling pressure.

Ethereum’s Rebound: The Key Support Level That Held The Line

Ethereum has rebounded from the $3,051 support level, regaining bullish strength as it approaches the $3,360 resistance. Trading above the 100-day SMA on the 4-hour chart highlights sustained upward strength, potentially supporting more gains if resistance is overcome.

An analysis of the 4-hour Relative Strength Index (RSI) reveals that the 4-hour RSI is attempting to rise above the 50% level after falling to 41%, signaling a possible shift in momentum. A move above 50% could indicate increasing buying pressure and support a continued uptrend, while failure to break above this level may suggest ongoing bearish pressure.

The daily chart shows that ETH is experiencing strong upside movement, which is highlighted by the formation of bullish candlestick patterns. Trading above the key 100-day SMA further confirms the asset’s positive trend. As the cryptocurrency continues on this upward path, it boosts market confidence, paving the way for potential gains, with the $3,360 target in sight.

Finally, the daily chart’s RSI is at 63%, reflecting strong optimism after recovering from a dip to 60%. This rebound signals a resurgence in buying pressure, suggesting a shift toward a more favorable market outlook. The RSI’s steady rise indicates that the asset may sustain its upward strength, reinforcing the ongoing bullish trend and paving the way for more growth.

Critical Resistance Levels To Watch As ETH Gains Momentum

As Ethereum gains momentum, key resistance levels become crucial in determining the next phase of its price movement. The immediate resistance to watch is at the $3,360 mark, which has historically acted as a strong barrier to ETH’s uptrend. A successful break above this level could lay the groundwork for Ethereum to target the next resistance at $3,659.

However, if the $3,360 level holds as resistance, ETH may face a period of consolidation or pullback before making another attempt at breaking through.

Featured image from Unsplash, chart from Tradingview.com

Negative sentiment is gradually growing in the general crypto market once again, with major digital assets like Ethereum, the second-largest cryptocurrency, witnessing a notable setback that led to a slowdown of its renewed upside price momentum. Due to the sudden drop, several crypto analysts believe that the altcoin could face an extended bearish movement shortly.

Ethereum Set To Enter A Correction Phase

IC News, an informative platform has delved into Ethereum’s current price action, offering an insightful perspective about its performance in the near term. After a thorough examination, the platform highlighted that ETH might be on the brink of a temporary corrective phase as market momentum cools off following recent gains. The platform’s prediction is due to signs of overbought conditions and profit-taking by retail and institutional investors, which could affect the stability of the crypto asset’s value.

According to IC News, Ethereum is currently getting close to a critical resistance area at the $3,600 price level, where there is a lot of supply and room for profit-taking. Given how robust this resistance level is, the platform claims there is a good chance that a brief period of correction could occur soon to limit buying pressure.

Furthermore, IC News points out that in order to create a more stable uptrend for Ethereum, the market will have to fall back toward the 200-day Moving Average (MA). 

While the analysis might spark worries about the altcoin‘s short-term trajectory, the pullback may turn out to be healthy for the asset. This is because the altcoin may create new strong support levels during the correction phase and fortify its base for future price expansion. It could also present several buy signals and opportunities for new and seasoned investors, allowing them to reassess their positions in light of waning market sentiment.

Despite the sudden price decline, the digital asset persistently demonstrates bullish potential in the broader outlook, with market expert and trader, Captain Faibik predicting a mid-term price target for Ethereum at the $5,450 level.

Thus far, Ethereum continues to move within the Broadening Wedge pattern, a key indication of rising momentum. Meanwhile, Captain Faibik anticipates a breakout from the bullish formation in the coming days, which will trigger another huge rally for ETH, potentially to $5,450 in the mid-term.

ETH Now Ahead Of America’s Banking Giant

Ethereum’s recent upswing has led the altcoin to crucial milestones in the last few days, such as surpassing financial behemoth Bank of America by market capitalization. On Sunday, ETH saw a surge in its overall market cap by over 5%, bringing it to a total of $383 billion and breaking past the market cap of Bank of America by a whopping $40 billion.

IC News stated that the crypto asset’s high valuation in comparison to Bank of America reflects a change in the dynamics of the traditional sector as blockchain technology adoption and growth start to outpace traditional banking systems.

Featured image from Unsplash, chart from Tradingview.com