Regaining its bullish momentum in a market that is still searching for direction. After stabilizing for several days, Ethereum made a strong breakout, surpassing the resistance level at $2,620 and breaking into the $2,700 area.
The main development behind this move was the break of a downward trendline near $2,450 on the hourly chart for the Ethereum/USD pair. Once this barrier collapsed, bulls rushed to recover. Momentum increased quickly, and Ethereum rose to a local high of $2,736. Since then, it has seen a slight pullback, but Ethereum remains steady above the 100-hour simple moving average, trading near $2,640.
Currently, the $2,720 level represents the next short-term obstacle. If the bulls manage to turn this level into support, we may see a rise towards $2,750, and even $2,840. If surpassed, $2,880 and $2,950 will be realistic targets in the upcoming sessions, especially if overall market sentiment holds.
But there is a surprise.
If Ethereum fails to break convincingly above $2,720, it may drop towards $2,600 or even $2,575. This level corresponds to the 50% Fibonacci retracement of the recent rise from $2,416 to $2,736. The price could drop to $2,500 or even $2,420 if the correction is deeper.
However, as long as Ethereum remains above $2,575, the trend will remain bullish. The next 24-48 hours may determine the path for next week.
Is Ethereum ready for a full breakout, or will it retest the key support level before its next rise?