Ethereum (ETH) trades above $2,600 after a 5% pullback from local highs around $2,750. Over the past two weeks, ETH has maintained an upward trajectory, generating optimism across the market as investors look for more signs of strength in price action.
Leading analyst and investor Carl Runefelt recently shared technical analysis highlighting that Ethereum has broken out of a bullish pattern that began forming in early August. According to Runefelt, once ETH confirms solid demand around its current level, it will only be a matter of days until the next rally begins.
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With the broader crypto market gaining momentum, Ethereum is positioned to continue rising, and investors are closely watching for confirmation of support at this key level. If ETH holds, the next leg higher could target higher price zones, increasing bullish sentiment. The next few days will determine whether Ethereum could resume its uptrend and capitalize on continued market strength.
Ethereum surpassing $2,600
Ethereum has underperformed compared to Bitcoin this year, leaving many investors worried that the next bull run is approaching. Although Bitcoin has rallied, Ethereum has struggled to recover with the same strength. This sparked concern among ETH holders, who expected the second-largest cryptocurrency by market cap to lead the charge.
Lead analyst Carl Runefelt recently shared a compelling analysis about X. The analysis presents a price chart that reveals Ethereum breaking out of a symmetrical triangle on the daily time frame – a classic bullish pattern.
If the price action holds, it could send ETH to $3,400, according to Runefelt’s analysis. This breakout is a key signal for Ethereum, but its sustainability depends on the price being able to retest the upper triangle line, which previously acted as resistance.
Currently, Ethereum is testing support at this critical level, with $2,600 being the threshold. A close below $2,600 would invalidate the symmetrical triangle bullish thesis and could lead to an even larger drop, dampening optimism surrounding ETH’s future price action.
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However, if Ethereum holds above this level, it could mean the breakout is intact, setting the stage for a strong recovery as the broader market prepares for a bull run. The next few days will be crucial for ETH’s trajectory.
Price Action: Technical Levels to Watch
Ethereum is at $2,620 after failing to reclaim the 200-day exponential moving average (EMA) at $2,795. The price is testing support around the crucial $2,600 level, which will determine the direction of ETH price action in the coming days.
If Ethereum holds above this level, the next target would be to get back above the 1D 200 EMA at $2,800. This is a crucial price zone as it aligns with ETH’s local high set in late August at $2,820.
A successful break above $2,800 would signal a strong bullish continuation, making a push towards higher levels imminent. However, if ETH fails to consolidate above $2,600, the risk of a pullback to lower demand zones becomes increasingly likely.
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Traders and investors are closely watching these levels as Ethereum seeks to regain momentum amid broader market uncertainty. The next few days will be critical in determining whether ETH will continue its upward trend or face more downward pressure.
Featured image of Dall-E, TradingView chart