Ethereum price has surged to $2,611, gaining traction after rebounding from the $2,500 support zone. This upward momentum has shifted short-term market sentiment as buyers regain control and push toward the critical $2,723 resistance level.
It is a move that happens after the price breaks out from a downward wedge on the 4-hour chart. A strong retest in price action after the breakout suggested that prices could keep rising. Buyers should now try to challenge the significant resistance between $2,660 and $2,723 if they want the momentum to continue.
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Technical indicators indicate that this positive trend for Ethereum is likely to last. Now that the 4-hour Bollinger Bands are widening, this usually means the market will volatilize, and a strong trend might appear. Prices are above the main 20, 50, and 100 EMAs in the chart.
There is steady upward momentum over the short term, as the Relative Strength Index is just below 59.36. Ethereum has not yet reached overbought levels, which means it can improve even further. MACD has given a bullish signal on the 4-hour chart as the histogram gains upward momentum.
Momentum Indicators Point to Potential Breakout Toward $2,800
The Ichimoku Cloud on the 1-hour chart highlights a bullish structure, with price trading above the Tenkan-Sen and Kijun-Sen lines. The Chikou Span is also positioned above price, reinforcing bullish sentiment. Immediate cloud resistance has been cleared, providing further upside room.
Source: Tradingview
On the daily chart, Ethereum is resting above the 0.382 Fibonacci level, which is currently at $2,424. The following main resistance point is expected at the 0.5 Fib near $2,745. If $2,723 is passed, it highlights the top end of the resistance band for bulls.
Source: Tradingview
The Stochastic RSI went above the oversold area, indicating that buyers are now regaining the upper hand. Bitcoin holding above $105,000 also helps altcoins traders gain confident, allowing Ethereum to recover further.
Currently trading between $2,565 and $2,530, Ethereum’s most resilient support lies at $2,496, where stability is crucial for maintaining bullish trends. A close above $2,723 might lead to a rally toward $2,800 and beyond $2,860.
Ethereum is close to breaking through a significant resistance point. A breakout above $2,723 may spark a strong upward move, while a fall below $2,530 may end the bullish trend.
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