The significant rally that commenced in August and gained momentum in September has ultimately transformed ETH’s higher-timeframe structure into a bullish one, with numerous analysts concurring that only one substantial resistance stands in the asset’s path. A decisive break above it could open the door to a much larger move toward 3,000 and beyond. The largest altcoin has now reclaimed the 200-day moving average and advanced into the $2,800 region last week, where it ultimately faced resistance. Crypto Traders emphasised the alteration in its market structure, indicating that a weekly close above the 200 MA and EMA has reinforced its bullish reversal.
However, he believes that $2,800 represents a significant barrier for ETH, and surpassing this level would result in minimal high-timeframe resistance before the $3,000-$4,000 range becomes relevant again. Aside from last week’s rejection at $2,800, this level has historically impeded ETH’s advancement on multiple occasions over the past few years. Michaël van de Poppe expresses optimism regarding the overarching structure of ETH. In a recent tweet, he asserted that it is “literally a matter of time” before the asset experiences another significant breakout to the upside.
Ethereum’s position is currently quite clear. The higher-timeframe trend has shown significant improvement; however, the market must still demonstrate its ability to convert one of its most persistent resistance zones into support. Fellow analyst noted that the magnitude of Ethereum’s high-leverage positions has experienced a significant decline recently, with long positions decreasing to approximately $2.1 billion, while short positions remained around $4 billion. This transpired following the destruction of the majority of the previously amassed high-leverage positions. The analyst noted that the diminished positioning renders ETH susceptible to a considerable rise in volatility.
This could be particularly important as Ethereum nears the $2,800 mark. Merlijn The Trader, who has maintained a bullish stance on the altcoin for several months, continues to express a positive outlook on its market structure. Most recently, he highlighted an emptied validator exit queue and contended that a significant portion of the forced selling pressure had already been absorbed during the prior drawdown. He concluded that “maybe sleeping on Ethereum was the biggest mistake of this cycle,” as the asset sits 80% higher than its July bottom.
