Ethereum ($ETH ) has recently confirmed a golden cross—a technical indicator that occurs when the 50-day moving average crosses above the 200-day moving average. This bullish development has added momentum to an already impressive rally that has seen ETH rise from the $1,500 range to over $2,600 in just two weeks. Market participants are now closely watching for a decisive break above the $3,000 mark, a key psychological and technical level.

Momentum Strong, But Short-Term Caution Warranted

While Ethereum's price action remains bullish, there are emerging signs of potential short-term exhaustion. The Relative Strength Index (RSI) has entered overbought territory, indicating the possibility of a temporary pullback or consolidation. Moreover, the recent rally has encountered stiff resistance around the $2,900 level—an area that aligns with the 200-day moving average and a prior breakdown zone from February.

Failure to break and hold above this resistance could lead to a retracement toward the $2,200–$2,100 support zone, which coincides with the 100-day moving average. This range represents a critical area for bulls to defend in the event of a pullback.

Short Squeeze Fueled the Surge, But Demand Must Follow

Ethereum’s rapid ascent was partly driven by a significant short squeeze, particularly as the price surged past $2,400 and $2,600. The forced liquidation of short positions added fuel to the rally, but recent data suggests that this source of momentum may be waning. Heavy liquidations last week indicate that much of the short interest has already been flushed out, potentially signaling a local top.

For Ethereum to sustain its upward trajectory, fresh buying interest is essential. Without renewed demand, ETH may continue to consolidate or face a mild correction in the near term.

Outlook: Consolidation or Breakout?

On the 4-hour chart, Ethereum has been trading in a narrow range between $2,500 and $2,600, suggesting a period of consolidation. A bearish RSI divergence—where price forms higher highs while momentum declines—further supports the case for a possible short-term pullback.

However, the golden cross remains a notable signal of longer-term strength. Should Ethereum regain $2,600 with strong volume and push above the $2,900 resistance, it would likely pave the way for a rally toward $3,000 and potentially higher levels, with $4,000 as the next major target.

In summary, Ethereum's bullish structure remains intact, but the path forward depends on the ability to attract new buyers and overcome key resistance levels. Whether ETH breaks out or consolidates further, the current technical landscape suggests that the next move could be significant.

#ETH #EthereumSecurityInitiative #BinanceAlpha$1.7MReward #BTCNextATH