Ethereum broke past the $2,770 resistance and now retests the same level to confirm strong support.
ETH formed a bullish structure after a long consolidation range and now targets levels above $2,880.
Traders watch to see if Ethereum holds the breakout zone as that could lead to a push near $3,000.
Ethereum broke above the $2,770 mark on June 12 and is now undergoing a textbook backtest of prior resistance. The move follows a prolonged period of consolidation between $2,580 and $2,760 on the 4-hour chart. Price is currently holding above the breakout zone, suggesting a strong setup for continuation
Source: X Price Action Confirms Breakout From Consolidation
Ethereum traded in a narrow range for several sessions before surging past key resistance near $2,770. The move created a bullish breakout as ETH exited the consolidation band. The chart from BITSTAMP shows price action slicing through previous highs and retesting the green zone.
This green rectangle spans approximately from $2,580 to $2,760. It served as a supply zone during prior attempts to rally. Once ETH broke above it, the area flipped into a demand region, now acting as potential support.
At the time of the chart, ETH trades at $2,777.1, slightly above the breakout area. A successful hold here can validate the bullish continuation structure. The price behavior during this retest could determine the next leg.
Pullbacks to breakout zones often provide clarity. Traders will watch to see if this retest leads to another move toward $2,880 and beyond. A failed retest might suggest a return to previous ranges.
Technical Setup Shows Strength for Bulls
Ethereum’s price action indicates a bullish structure on the 4-hour timeframe. The breakout above resistance followed a tight coil of price movement. This type of pattern generally builds pressure that can lead to extended rallies.
Volume and candle structure also support the move. The surge came with expanded price bars, signaling momentum. Traders will evaluate if buying pressure sustains during the backtest phase. The clean rejection of lower prices before the breakout adds further strength to this setup. ETH moved sharply after bouncing from around $2,580, showing significant demand. Such behaviour near key zones supports bullish sentiment.
If the support zone continues to hold, the bullish pattern remains intact. This could attract more participants targeting levels like $2,900 and $3,000. A loss of this zone might delay upward continuation, but won’t immediately negate the trend. Market observers expect ETH to maintain a price above $2,760 to sustain a bullish structure. Closing below this area could lead to a deeper retracement, testing levels under $2,700.
Can Ethereum Sustain This Rally or Retrace Below Key Support?
The current Ethereum move raises a key question for short-term traders. Can ETH hold above $2,770 and continue higher? The answer lies in how the asset behaves during the backtest.
A successful retest often confirms that previous resistance has turned to support. Such price action typically invites stronger buying activity. This dynamic could provide ETH the strength to reach new short-term highs.
Failure to hold this level, however, may prompt a shift in structure. Traders could interpret the breakdown as weakness, pushing ETH back to consolidation zones. Price must confirm direction in the next few sessions for trend clarity.
