ETH adjusted after the rally, with bulls holding key support.
After successfully breaking through the $2,000 mark, Ethereum's price soared to $2,585. Although it experienced a pullback near $2,710 due to pressure, ETH is still operating within an upward channel.
On the 4-hour chart, the $2,560 to $2,570 area has become a key short-term support, which coincides with the 20-day moving average and is close to the middle Bollinger Band, forming a solid dynamic support zone.
High-level consolidation has not changed the upward structure, and the trend remains bullish.
From a larger timeframe perspective, ETH has initiated a rapid rebound since breaking through $2,400, currently reaching the 0.5 Fibonacci retracement level of the previous decline range ($4,100 to $1,385) at $2,745.
Despite a slight pullback today, as long as it does not fall below $2,500, the bullish structure remains intact. If it loses this level, prices may test $2,385 and $2,186 (corresponding to 4-hour EMA50 and EMA100).
Short-term momentum is slowing, and technical indicators are entering a transitional period.
From a technical perspective, the 30-minute RSI indicator is currently at 45.5, indicating neutral momentum; the MACD has shown a slight death cross, with momentum appearing slightly weak, but no clear reversal has formed yet. On the 4-hour chart, the MACD histogram has been continuously contracting, further indicating that the upward momentum is temporarily cooling off.
Bulls are facing their last line of defense, and a breakout is still expected.
The daily chart of Ethereum still shows strength, having broken through a six-month downtrend line, and accompanied by an increase in volume to conquer the strong resistances at $2,200 and $2,400. The current $2,710 mark coincides with the main bearish resistance zone since the beginning of the year, which is key to determining the future direction.
If ETH can continue to hold above $2,560 and return above $2,620, it is likely to challenge the resistance zone of $2,710 to $2,745, further targeting the 0.618 Fibonacci retracement levels of $2,850 and even $3,025.
Is the pullback an opportunity? Or a signal of trend termination?
This round of adjustments is mainly caused by profit-taking from a rapid increase of 35% in the short term. Although both the MACD and stochastic RSI indicators show signs of weakening momentum, no structural breakdown has occurred. As long as ETH holds the liquidity support area at $2,500, the downside risk is limited.
If it unexpectedly falls below this level, attention should be paid to the EMA support lines at $2,385 and $2,186.
