1. The current technical pullback as a precursor to a strong rise
The price of Ethereum (ETH) is currently experiencing a technical pullback after achieving significant gains, having dropped by 4.27% in the last 24 hours to reach $2,533.13 with trading volume decreasing by 29.57%. This pullback is interpreted as a healthy correction to re-test support levels before resuming the upward trend, especially with the Relative Strength Index (RSI) remaining in areas indicating potential long-term upward momentum.
2. Key support and resistance levels
- Strong support revolves around $2,400 which is a key Fibonacci level (61.8%), and may witness a strong rebound if the price reaches it.
- The critical resistance is at $2,180 where breaking this level and holding above it is a signal to target $2,263 then $2,354 and finally $2,448.
- The ambitious target if the upward momentum continues, Ethereum may head towards $3,000 - $3,300 especially with improved market conditions such as the potential approval of ETF funds or network updates.
3. Technical signals supporting the rise
- Buyer momentum has been observed breaking through significant psychological levels like $2,000 with a positive crossover of moving averages (EMA 20 and EMA 50) on the hourly timeframe (H1).
- Trading volume is concentrated around $2,050 - $2,150 indicating a balance between buyers and sellers, with the potential for a bullish breakout if the price exceeds $2,200.
- RSI indicator despite the pullback, the weekly RSI remains at high levels (such as 79 according to other analysts), supporting the idea of continued upward momentum.
4. Supporting fundamental factors
- Network updates such as the phases of "The Surge" and "The Verge" aimed at improving scalability, which could enhance investor confidence.
- ETF funds Although there has been a delay in approval, any progress in this regard could ignite a strong bullish wave, as was the case with Bitcoin previously.
5. Potential scenarios
- The bullish scenario breaking resistance at $2,180 could open the door for a bullish wave targeting $3,300 especially with improved liquidity and institutional buying momentum.
- The corrective scenario in case of failing to break resistance, the price may return to test $2,400 before attempting to rise again #ETH
