Ethereum has recently surprised the market with a sudden upward move, reclaiming critical support levels that had previously been breached. This unexpected rebound has left bearish traders scratching their heads, unsure of whether this was just a fakeout or the beginning of a new rally for the cryptocurrency.
UniChartz, in a recent post on X, highlighted the classic fakeout move by Ethereum. The price briefly dipped below key support and an ascending trendline, only to swiftly recover and move back above these levels. This kind of false breakdown often traps bearish traders and can lead to a significant upward move if momentum builds. The reclaim of the support zone signals that bulls are still in control, injecting optimism into the market for a potential short-term rally.
However, UniChartz emphasized the importance of follow-through. Ethereum must maintain its position above the reclaimed support level and form higher lows to signal continued upside potential. Failure to do so could result in another shakeout for the cryptocurrency.
As Ethereum shows signs of strength after reclaiming support, attention turns to key resistance levels ahead. The $2,858 level poses an initial challenge, followed by the $3,360 pivot zone, and the significant $3,659 level. Reclaiming these levels would indicate a shift back towards a more dominant uptrend for Ethereum, potentially targeting higher levels such as $4,100 and beyond.
While the reclaimed support provides a solid foundation for Ethereum’s upward journey, the bulls must defend it convincingly and overcome these major resistance zones with strength and consistency to sustain the positive momentum. Monitoring price action and volume will be crucial in determining whether Ethereum’s recent rebound is the start of a sustained rally or just a temporary fakeout in the market.