Ethereum broke above an old resistance level and turned it into a potential support. If the retest is successful, it will be possible to continue towards the higher target, which includes the $3.600 high timeframe resistance.
EthereumETHThe price of () broke through the $2,819 resistance zone, which historically has been used to cap upward movements. This breakout was confirmed with a large impulsive white candle, followed by price acceptance at this level. If ETH is able to maintain this support area on a bullish retest it will signal strength in the uptrend and could potentially drive the price towards the next major resistance around $3,600.
Points of interest
- Breakout Above $2.819 Ethereum surpassed a crucial resistance zone, which was the cause of multiple rejections in the past.
- Fibonacci Resistance Ahead: Just above the price of current, we can see that there is a 0.618 Fibonacci level. It may lead to a temporary rejection.
- Retest zone at $2.819 Tested and held confirms bullish retest, and strengthens case for rally continuation.
The technical breakthrough of Ethereum above $2,819 is an important development. The level was a persistent ceiling that has been resisted by previous attempts to break through. This level has been a stubborn ceiling for months, with previous breakout attempts repeatedly rejected.
The confluence at 2,819 of multiple factors, such as the timeframe resistance multi-month, previous structure highs, and the value area’s high makes this zone more meaningful. The overlapping indicators increase the technical significance of a breakout.
The upward trend is currently facing some potential obstacles. The Fibonacci level of 0.618, which is often a resistance for reversals, consolidations, or reversals, sits just above the current price. Rejection from this level would not be necessarily bearish. It could instead open the doors for a bullish return to the $2 819 area. Ethereum may resume its upward trend with technical goals near $3600, if that retest shows a confirmation with a new low.
This structure is still firmly bullish. Higher highs and higher lowers are forming regularly. The next step in a rally would be a clean test and hold at the $2,819 level of support.
Price action to come
A pullback towards $2,819 can be expected if Ethereum rejects the Fibonacci 0.618. If that level is held, it would be a confirmation of a bullish test and trigger the continuation towards $3600 resistance.
If ETH does not hold the $2,819 mark, then bullish momentum could weaken on a short-term basis. The market is still strongly bullish and upside potential remains favored.
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Source: crypto.news
