Ethereum has been hovering at its highest levels since the end of July, around $3,470. This marks a significant rebound for the second-largest cryptocurrency, which has successfully maintained above the critical 200-day moving average (MA) of $2,965. By holding this level, Ethereum confirms a bullish price structure, paving the way for its approach to the next milestone—close to the $4,000 annual high.
Top analyst and investor Carl Runefelt recently shared his technical analysis of X, noting that Ethereum's price movements lay a solid foundation for further growth. According to Runefelt, once a key resistance level is broken, Ethereum will see a significant rise, indicating increased confidence among traders and investors.
Ethereum's sustained on-chain activity and growing institutional interest further fuel this bullish sentiment, continuing to support its upward trajectory. However, to break through $4,000, Ethereum needs to overcome resistance zones that have historically triggered pullbacks.
As ETH consolidates its gains, market participants are closely watching for signs of the next breakout, which could set the tone for the remainder of the year. Ethereum's recent strength underscores its position as a market leader and a bellwether for broader cryptocurrency trends.
Ethereum tests key supply
Ethereum is testing a key supply area below $3,500, which could push the cryptocurrency to an annual high in the coming days. This level has become a focal point for traders and investors, as breaking through this level could signify a continuation of Ethereum's recent bullish momentum.
Top analyst Carl Runefelt recently shared his insights on X, emphasizing the importance of this resistance. According to his technical analysis, once Ethereum breaks the $3,500 mark, it could quickly rise to $3,700, potentially within hours. Market sentiment around Ethereum remains optimistic, with a surge in demand acting as a catalyst for further price increases.
Ethereum's strength at this critical level has reignited speculation about a possible altcoin season. If ETH continues to rise and attract more capital, it could pave the way for other altcoins to follow suit. Historically, Ethereum's price movements have been a leading indicator for broader market trends, and this time seems no exception.
As ETH approaches this critical moment, all eyes are on whether it can maintain its upward momentum. If ETH strongly breaks through $3,500, it will confirm the bullish structure and lay the groundwork for Ethereum to dominate the market narrative in the coming weeks.
Key levels to watch
Ethereum's trading price is $3,470, hovering below the critical $3,500 resistance level. This local high has become a focal point for traders and analysts, as breaking through this high could lay the foundation for a significant rebound. If Ethereum can strongly break through this resistance level, it may trigger a rally that drives the price up to $3,900 within days.
However, the market remains cautious about the potential risks of this critical moment. If Ethereum fails to break through the $3,500 barrier, it could lead to sideways consolidation as Ethereum seeks stronger buying pressure to regain its upward momentum. In a more pessimistic scenario, a significant pullback could occur, pushing ETH back to lower levels to establish a more solid support base.
The current price movement highlights the importance of this resistance zone. A breakout above $3,500 could confirm Ethereum's bullish structure and enhance confidence in a sustained upward trend.
On the other hand, any hesitation or rejection could indicate a need for further consolidation before the next major move. As ETH approaches this critical moment, the market is closely watching to determine its next direction and the potential impact on the broader cryptocurrency landscape.