Ethereum ($ETH) – Preparing for a Major Upside Breakout?
Ethereum is currently consolidating within a descending trendline after failing to hold above the $4,300 resistance zone. Despite the short-term pullback, the broader structure suggests a potential bullish reversal.
Key factors to watch:
1️⃣ Cup-shaped recovery pattern – Price action on the 4H chart shows the formation of a rounded bottom, which often signals the end of a correction phase and the beginning of a new bullish leg.
2️⃣ Fibonacci levels – ETH has bounced from the 38.2% retracement ($4,236). As long as this support holds, the probability of retesting higher levels remains strong.
Next resistances: $4,446 (23.6%), $4,786, and the psychological barrier at $5,000–5,050.
3️⃣ Momentum indicators – MACD is showing signs of a bullish crossover, while RSI has recovered from oversold territory, confirming buyers are regaining strength.
4️⃣ Volume confirmation – Noticeable increase in buying pressure after ETH defended the $4,200 area, suggesting institutional support at these levels.
🔮 Outlook: If ETH successfully breaks above the descending trendline and secures a close above $4,450, the path towards $4,870–$5,000 opens up. Failure to hold $4,236 could expose ETH to deeper support at $4,066 and $3,897.
👉 In conclusion, Ethereum is at a critical inflection point. A breakout from the current consolidation may trigger a strong bullish wave toward $5K. Traders should closely monitor the $4,236–$4,450 range as the battleground for the next major move.
