Ethereum has experienced a remarkable 24% increase in just over a week, surpassing a crucial resistance level with robust trading volume, indicating a resurgence of bullish momentum. With a bullish structure still in play, the focus now turns to whether ETH can maintain its momentum toward the $4,956 target or if it will experience a brief pullback first. After a rapid 24% surge in just 8 days, ETH has reached a significant resistance level and is exhibiting indications of rejection. Max Trades reports that this vertical move has taken place without any significant retracements, indicating that a cooling-off period is highly probable. A pullback at this stage is viewed as a healthy aspect of the market cycle, allowing for a reset of momentum.
A key focus for a possible long entry is the $2,150 level, which has historically served as range-high resistance. The setup is further strengthened by technical confluence, as this price point closely aligns with a significant Fibonacci retracement level and remains above the weekly open. At this moment, Exponential Moving Averages sit beneath the spot price, acting as a dynamic cushion. This indicates that the overarching trend remains solid, even in light of the current necessity for a price adjustment. Risk management hinges on a precise invalidation point situated beneath the $2,080 support level, aligning with the Fibonacci Golden Pocket, a pivotal zone for buyers to safeguard.
In a recent update, Kamile Uray highlighted that Ethereum has surged past the pink resistance level on the chart with notable volume; a significant move that contrasts with Bitcoin, which has not yet achieved a comparable high-conviction breakout. The increase in volume lends legitimacy to the shift, indicating that bullish momentum is picking up steam. Analyzing the lower timeframes, a consistent 4-hour close above the $2,475 mark would act as the initial signal that the bullish trend has potential for further advancement. Maintaining position above this zone may strengthen the breakout structure and indicate that buyers are still in command in the near term.
The overall sentiment stays positive as long as Ethereum manages to hold the $1,916 support level on the 4-hour chart. Holding this level sustains a market structure that is conducive to additional upward movement within the prevailing trend. Uray emphasized that the Libra formation remains active, with an upside target approaching $4,956. However, the $3,445 level stands out as a key resistance on the way up, where a rejection could trigger a temporary pullback before continuation. On the downside, the formation would be invalidated if the price drops below the $1,388 level, marking it as the critical stop point for the bullish scenario.