Ethereum breaks a five-year range with strength as the price retests $3.7K, keeping bullish momentum alive despite short-term fear.
RSI enters a power zone after a bullish crossover, indicating increased momentum and potential for ETH to move sharply higher.
Bearish calls grow louder during a 15% dip, a pattern that historically signals Ethereum is far from forming a market top.
Ethereum has broken out of a 5-year range with strength, sparking bullish momentum as short-term fear rises during a modest pullback. While price hovers near $3,640 as of writing, market structure suggests Ethereum is far from topping out.
Ethereum Breaks 5-Year Range After Liquidity Deviations
After two major fakeouts that swept liquidity above and below its symmetrical triangle, Ethereum has finally broken cleanly above the structure. The breakout is holding with a textbook retest now forming around the $3,600–$3,700 area. This move is seen as confirmation that ETH has exited a long-term consolidation phase and is setting up for higher levels.
As noted by Sykodelic_, the presence of bears during a minor retrace—just 15% after a 50% surge — is not a sign of weakness. Rather, he points out, "the more bears we have show up after a tiny retrace, the further we are from the top." This sentiment underscores the current market’s disbelief, which historically precedes strong bullish continuations.
https://twitter.com/Sykodelic_/status/1948453898449994035
The triangle breakout is not only clean but supported by volume and strong reaction from key levels, suggesting the move is sustainable.
RSI Structure Supports Further Upside Potential
Ethereum's RSI on the weekly chart is entering the "power zone," a level that has often preceded explosive rallies in past cycles. The RSI moving average crossover also favors continuation, not exhaustion, further reinforcing the bullish case.
Sykodelic_ added context on market psychology, stating that during true market tops, “no one will be calling a top” and every dip is dismissed as “just a higher low.” The current sentiment remains cautious, which historically is a healthy sign for trend continuation.
ETH still has room for RSI expansion, implying upside momentum remains intact as long as the price holds its retest zone.
Price Must Hold Retest for Macro Rally to Emerge
As Ethereum retests the broken range, traders are watching the $3,600–$3,700 support closely. Holding this level could open a move toward $4,800–$5,500 based on prior breakout behavior.
Failure to maintain this support would weaken the structure and risk invalidating the breakout. So far, the response from this zone has been firm, keeping the bullish thesis alive.
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