Ethereum (ETH) is currently trading above $2,600 after experiencing a 5% pullback from its recent highs around $2,750. The past couple of weeks have seen ETH maintaining a bullish trajectory, which has instilled optimism among investors who are eagerly awaiting further signs of strength in its price action.
Renowned analyst and investor Carl Runefelt recently conducted a technical analysis on Ethereum, pointing out that the cryptocurrency has broken out of a bullish pattern that started forming in early August. According to Runefelt, once Ethereum confirms solid demand at its current level, it is only a matter of days before the next rally begins.
With the overall crypto market gaining momentum, Ethereum is well-positioned to continue its upward climb. Investors are closely monitoring for confirmation of support at the crucial $2,600 level. If ETH manages to hold above this level, the next leg up could see it targeting higher price zones, further bolstering the bullish sentiment surrounding the cryptocurrency. The coming days will be pivotal in determining whether Ethereum can resume its upward trend and capitalize on the current market strength.
Despite Ethereum’s underperformance compared to Bitcoin this year, recent developments suggest a potential turnaround. Carl Runefelt’s analysis indicates that Ethereum has broken out of a symmetrical triangle pattern on the daily timeframe, a classic bullish signal. If the price action holds, ETH could potentially reach $3,400, marking a significant milestone for the cryptocurrency. However, the sustainability of this breakout hinges on Ethereum successfully retesting the upper triangle line, which previously acted as a resistance level.
Currently, Ethereum is testing support at the critical $2,600 level. A close below this level could invalidate the bullish thesis of the symmetrical triangle pattern, leading to further downside pressure on ETH’s price. On the other hand, if Ethereum manages to hold above $2,600, it could signal the continuation of the breakout, setting the stage for a strong rally as the broader market gears up for a potential bull run.
In terms of technical levels to watch, Ethereum is currently hovering around $2,620 after failing to reclaim the 200-day exponential moving average (EMA) at $2,795. The cryptocurrency is testing crucial support at $2,600, which will play a significant role in determining its future price action. If Ethereum maintains above this level, the next target would be to reclaim the 1D 200 EMA at $2,800, aligning with its local high set in late August at $2,820.
Traders and investors are closely monitoring these levels as Ethereum strives to regain momentum amidst market uncertainties. The next few days will be crucial in determining whether ETH can sustain its upward trajectory or face potential downside risks. As Ethereum continues its price journey, market participants remain cautiously optimistic about its future prospects.