Ethereum has been facing challenges in reclaiming the $2,800 level, as bearish pressure continues to keep the price below this crucial resistance. Despite this, there is strong demand for ETH, with bulls managing to hold the price above the key support level of $2,600. The short-term outlook for Ethereum remains uncertain, with investors speculating on whether the current consolidation phase will result in a breakout or further declines.
There is a growing sentiment that Ethereum could be on the verge of a recovery. Analyst Jelle recently shared a technical analysis on X, pointing out that ETH has recently retested key support levels, including the 200-week exponential moving average. According to Jelle, this confirms that the uptrend structure of Ethereum remains intact, indicating bullish potential for the cryptocurrency.
While the price action for Ethereum has been sluggish, Jelle’s analysis suggests that the cryptocurrency is still holding critical levels that could pave the way for a strong upward move. If Ethereum manages to reclaim the $2,800 level in the coming days, momentum could build towards a push above $3,000. However, if selling pressure persists and ETH drops below $2,600, a deeper retracement could be expected. Patience is advised as Ethereum hovers near these crucial technical levels.
Market sentiment remains divided, with some expecting a prolonged consolidation or further correction, while others believe that Ethereum is poised for a breakout. Analysts emphasize that Ethereum is at a critical juncture, and the next few days could determine its short-term trajectory.
Jelle doubts that bears will be able to defend the $4,000 level once Ethereum gains strength. As ETH continues to hold key support levels and attempts to reclaim $2,800, a breakout could lead to a significant rally in the coming weeks. Investors are urged to remain patient as Ethereum navigates this critical phase, with many closely monitoring for potential trend confirmation.
Ethereum is currently trading at $2,805, with bulls aiming to establish support at this level to confirm a recovery rally. The price is inching closer to the critical $3,000 mark, just above the 4-hour 200 Moving Average. A break above $2,950 and a sustained hold above this level could trigger a strong bullish recovery, pushing Ethereum towards higher resistance levels.
However, failure to hold above $2,800 could weaken the bullish momentum, leading to another round of selling pressure. In such a scenario, Ethereum could drop back towards the $2,600 demand zone or even lower, indicating downside risks.
Ethereum is currently at a pivotal point, where bulls need to step up to maintain short-term strength. A breakout above resistance levels could instill renewed optimism among investors, while a failure to sustain current levels may result in continued market uncertainty. All eyes are on Ethereum’s ability to reclaim and consolidate above key resistance levels to determine its next major move.
Featured image from Dall-E, chart from TradingView.