Ethereum is showing strong signs of a potential breakout as bullish indicators gain traction on both technical and on-chain levels. A key development on the daily chart is the confirmation of a Golden Cross, where the 50-day moving average has crossed above the 200-day moving average.
According to crypto analyst Ted Pillow, this formation is historically a precursor to sustained uptrends. While Ethereum stabilizes above major zones now, the signal suggests it might attempt to reach $3,000.
Ali Martinez also says that Ethereum’s most notable MVRV rating change is adding positive momentum. The ratio indicates that the market value is now higher than the realized value. Because of this, ETH could be undervalued, which may encourage buyers to join the market again.
Furthermore, large-scale buying is increasing, with Stylesky Strategies noting that whales purchased 450,000 ETH in the past month. Also, almost 1 million ETH has been taken off exchanges since April. Because of this trend, more investors keep their coins, decreasing the immediate supply.
According to Martinez, Ethereum must stay above $2,200 to move higher, as preserving this zone keeps the short- to mid-term outlook bullish.
Also Read: Warning For XRP Investors: Price Risks Dropping Below $2 if This Happens
Key Levels Point to Upside as Market Eyes $2,627 Breakout
Ethereum’s rebound from the $1,600 range led to a push above the 0.618 Fibonacci level near $2,081, now a strong support area. The price recently approached the 1.618 extension at $2,290, indicating strong buyer interest in higher ranges.
The 2.618 Fibonacci extension at $2,627 is closely watched by traders since breaking it may encourage a positive trend. Three other possible targets are $2,964, also called the “6,000-point psychological” target, $3,172, and $3,000, which is often mentioned as a key psychological level.
Despite the overall upbeat messages from technical signals, a few indicators show that Crypto may consolidate soon. The RSI, which was previously overbought, is now at 60.90. Meanwhile, signs from the Balance of Power indicator suggest that the growth may take a short-term break.
The network structure of Ethereum and large whale buying are supporting a price seizure. Should the $2,627 resistance level be broken with powerful volume, the cryptocurrency might soon approach the $3,000 mark.
Also Read: Vitalik Buterin Warns Ethereum Scaling Could Threaten Network Decentralization
